Overdraft help please

BLUEBIE

Hi,

I am currently splitting up with my husband. Other than the mortgage, the only debt we have it a £7000 overdraft which is fully used. Each moth I am paying about £60 - 80 interest, but not actually paying it off. I would like to try to convert this into a loan so the £80 a month I'm paying at the moment will actually start to pay some of it off.

Does anyone have any advice about the best way to go about this? We are going to share the monthly cost of the loan. But I need the cheapest option. My husband belongs to a credit union who has very reasanble rates, but they have said they won't loan that amount the first time. They said to put in an application asking for that amount and he would be offered 'something' so I don't know if to go down that line and get maybe £1000 - 2000 and reduce the overdraft to £5000 or what? Anyone have any advice or options?

Its is with Lloyds tsb if thats any help. Do you think if I approached them they would offer me a deal? I don't want to at the moment as I have heard stories about bank accounts being frozen when you mention splitting up and at the moment we want to keep the joint account until we are more sorted.

Thanks for reading!!

Bee

grumbler

MSE article: Cheap Loans

BLUEBIE

Thank you :-)

jonesMUFCforever

IMO the bank will only consider you for a loan to repay the overdraft if they think you are credit worthy enough to cover the repayments.
From their point of view they can come after both of you for the debt now - you only narrows their margin by 50%.