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Arranged Overdraft Problem
bandos2007
Posts: 105 Forumite
Hi
Last year I switched my bank account from Santander to Lloyds leaving me owing £2000 which had built up on an arranged overdraft facility. I have been paying small amounts when I can, but not making any headway and the balance owing due to charges is now £2250. I know I should have contacted Santander before now, and when I did call them yesterday and said that I could not afford more than £20 per month which is the exact amount they are charging for the arrangement they refused to do anything to help.
I have cut back all that I can and £20 will be all I can manage which will not reduce the amount owing because they are charging £20 a month.
Other debts are £20k of defaulted credit cards to which I am paying a minimum each month.
I am loathe to pay £20 a month for the account to stand still, what should I do ? Should I let the account default?
I would appreciate any advice.
Cheers
Steve
Last year I switched my bank account from Santander to Lloyds leaving me owing £2000 which had built up on an arranged overdraft facility. I have been paying small amounts when I can, but not making any headway and the balance owing due to charges is now £2250. I know I should have contacted Santander before now, and when I did call them yesterday and said that I could not afford more than £20 per month which is the exact amount they are charging for the arrangement they refused to do anything to help.
I have cut back all that I can and £20 will be all I can manage which will not reduce the amount owing because they are charging £20 a month.
Other debts are £20k of defaulted credit cards to which I am paying a minimum each month.
I am loathe to pay £20 a month for the account to stand still, what should I do ? Should I let the account default?
I would appreciate any advice.
Cheers
Steve
0
Comments
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Probably. If only to put all your creditors on an equal footing so they all get fair shares.bandos2007 wrote: »Should I let the account default?"It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
Your credit files are Already trashed so defaulting the Santander account is not going to make no difference.
Defaults drop off your credit report after 6 years wether they're paid or not.0
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