Overdraft

natlai

Hi Everyone,

I'm trying my best to clear my debts off but the one I'm stuck on is my Lloyds Overdraft. It's a £3000 overdraft that I couldn't clear off. I moved my bank account to RBS and pay £60 a month to my LTSB overdraft which just covers the charges.

Should I write to lloyds and ask them to hold the charges for 6 months to help me try and clear the debt with them as at that point I'll have an extra £200 a month from a loan ending to throw at it?

Thanks for your help in advance

Nat

Happytogetdebtfree

Hi and welcome you can try have you posted an soa maybe we can cut some more off your outgoings that will help towards your overdraft ? good luck in your journey to financial freedom

natlai

Hi and thanks for replying. I've started my own DMP and the only one that I've not contacted is Lloyds as I'm scared of contacting them. I've already reduced my outgoings as much as I can even to the point that I am cycling instead of using my car to get to work etc but still need it for visiting family who live 10 plus miles away and for food shopping. I'm selling everything I can on Ebay and thankfully it's a free weekend to list 100 items I'm trying to snowball and pay off the lowest debts first. I'm waiting on Barclaycard getting back to me about PPI claim on creditcard and I've now got to the stage that the Ombudsmen are involved as they weren't dealing with my claim.

I'm paying the most I can as I have only £125 left per month to live on. I've a job coming up in October that I could earn £400 - £700 for 2 weeks work but payment wont come through till November. I'm already doing everything that I can to clear my debts.

fatbelly

There's no point paying Lloyds £60 per month if they're applying £60 charges. They probably don't realise that you are having difficulty as, from their perspective, you are still operating the account within its terms and conditions.

The National Debtline site has a load of standard letters and the initial one would probably do the job here. So stop paying and send:

Dear Sir/Madam

Re:- Account/Reference Number 4563210025897412

We are writing to inform you that we are seeking advice and assistance regarding our current financial difficulties.

To this end, we would appreciate if you could hold any action on the above account for a period of at least 28 days.

Also, during this period, could you please freeze interest and/or any other charges accruing on the above account.

We look forward to hearing from you as soon as possible.

Yours faithfully

Then incorporate them in your dmp and make an offer. Insist on interest frozen and charges stopped.