Stop the interest !?!

gunnerman1632

I have been paying an overdraft ( which was for £3000 ) with Lloyds bank and I have been paying it religously every month now for 5 years, but now I still owe them nearly £5000 now. The payment I make to them every month ( £20 ) just gets swallowed up in interest. I cant afford to pay anymore than that a month. Can anyone help ? How would I write a letter to ask the bank to stop adding the interest ?

smilealot

Hi gunnerman1632 :hello:

Welcome to the forum. I'm no expert (although many people on here are, so they'll be along soon), but it sounds like a Debt Management Plan might be for you. You can go through PayPlan or CCCS (search on Google) who provide help to set it up for free. It looks at your income and expenditure and works out how much disposible income you have to pay your debt. One of the advantages is that they usually (but not always) get interest stopped while you pay the debt off. CCCS have a Debt Rememdy tool which will give you an idea as to whether it would be useful for you - no obligation. Do you have any other debts?

Or you could simply write to your bank, what harm would it do?!

Good luck,

smilealot :rolleyes2

rog2

gunnerman1632 wrote: »

I have been paying an overdraft ( which was for £3000 ) with Lloyds bank and I have been paying it religously every month now for 5 years, but now I still owe them nearly £5000 now. The payment I make to them every month ( £20 ) just gets swallowed up in interest. I cant afford to pay anymore than that a month. Can anyone help ? How would I write a letter to ask the bank to stop adding the interest ?

There are some good template letters on the National Debt Helpline website - links at top of page.

lonely_2

Look at getting your charges claimed back!! If most of this debt has been accumulated from UNAUTHORISED overdraft charges, you have a good chance of getting your money back.