Bank overdraft help please.

angelcake

I have 2 accounts with Lloyds, they both have a £1500 overdraft - This was managable as when my partner got his wage it would go straight into my account... basically we were living out of the overdraft. We have recently split, he has moved out and I don't have his wage coming in. I only work part time and for very little so won't earn nearly as much. I have sat down to try and work out how to pay all the bills etc and am very worried about this overdraft. I haven't gone in to talk to the bank yet as its all very raw and painful split (we have 3 children). He has agreed to help pay it off but I get charged around £60 a month on each account due to overdraft fees etc... My Ex has proposed to pay £125 a month for 2 years to help clear it. Obviously the £60 charges will hit that too. I am wondering what my options are. Say for example making it like 1 loan so I don't incur as many charges..

[Deleted User]

Working part time for, as you put it "very little", and with 2 maxed out ODs, I can't see any reputable lender loaning you £3,000.

I'd suggest waiting the 2 years, at which point the ODs will be down to £1,560 (£780 each), then applying for ~ £1,600, allowing you to clear down both.

I know paying £1,440 in charges isn't very MSE, but, under the circumstances, your options for borrowing will be very limited.

You could post a SOA, to see if the folks here could help you free up some cash from your budget.

Finding just £60pm, would cover the charges, allow the ODs to be cleared in the 2 years.

seanavfc92

Are the two overdrafts your only debts or do you have unsecured lending elsewhere?

Have you considered a Debt Management Plan? Speak to a debt management company (those who don't charge a fee) to seek support/advice.

Someone like StepChange or National Debt Line can help you complete a budget and see what is available to pay off your creditors each month, without the worry of the charges taking money away from your essential living costs.

sourcrates

Get a new "basic bank account", with no OD.


Obviously with a bank you do not have debts with.


Treat the two OD`s as any other unsecured debt, write to the banks explaining your situation, tell them you have insufficient money for essential living expenses, and offer them a monthly repayment you can afford to make to clear the balances.


They may suspend interest and fees if you explain your self concisely to them.

MadelinesMum

Hi, I'm on a debt management plan and I owe Llyds £1600 on overdraft and £5k on credit card. Llyds froze the interest on both and I pay a smaller amount monthly but it will take 7 years to pay it off. If you have spare cash you can pay it into the DMP to clear the debts quicker.