overdraft not going away LLoyds TSB/TSB

treasuretiger

Hi all, about 2008, i think, i took out a student account with a 1.5 k overdraft, with the then bank lloyds tsb, my bank is now tsb, how ever i now have this overdraft where i am just paying interest each month, on a date set by the bank. Is there any way anyone knows of that i can get this moved to paying it off on a direct debit or something like that? i excel at DD's but paying something off on my own, oh gawd i dont know how much interest ive paid off now!

grumbler

treasuretiger wrote: »

Hi all, about 2008, i think, i took out a student account with a 1.5 k overdraft, with the then bank lloyds tsb, my bank is now tsb, how ever i now have this overdraft where i am just paying interest each month, on a date set by the bank. Is there any way anyone knows of that i can get this moved to paying it off on a direct debit or something like that?

Where are you paying from?
If it's another current account, you can set up a Standing Order.

i excel at DD's but paying something off on my own, oh gawd i dont know how much interest ive paid off now!

Well, wait until the bank loses it's temper, pulls the overdraft and demands immediate payment of the full balance. If you fail to do this, they will sell the debt to a debt collection agency - experts in helping people like you to pay their debts.

colsten

Overdrafts go away when you pay them off in full. You can make one or more online transfers into your overdrawn account, write a cheque to yourself and pay it in at the bank, deposit cash into your account at the bank etc etc.

[Deleted User]

Hi


When I had a student account (many moons ago) I used to go into branch very month and reduce my overdraft by £50 per month until it was paid.


Failing that, if they will not let you do that, transfer a set amount by Standing Order to a savings account and then pay off when you have the lump sum.

thebritishbloke

MrsBrownBear wrote: »

Hi


When I had a student account (many moons ago) I used to go into branch very month and reduce my overdraft by £50 per month until it was paid.


Failing that, if they will not let you do that, transfer a set amount by Standing Order to a savings account and then pay off when you have the lump sum.

I wouldn't advise doing this, as it looks bad on your credit file (looks like the bank is lowering it, not you).

Just make sure you put money into the account each month more than the interest. If you have no discipline with putting the money in and not spending more of the overdraft, then you need to start lowering the limit as you pay it off.

Ed-1

thebritishbloke wrote: »

I wouldn't advise doing this, as it looks bad on your credit file (looks like the bank is lowering it, not you).

Just make sure you put money into the account each month more than the interest. If you have no discipline with putting the money in and not spending more of the overdraft, then you need to start lowering the limit as you pay it off.

Can't see how it would look bad on a credit file - the limit is staying the same, it's just the debit balance that's getting lower.

Archi_Bald

thebritishbloke wrote: »

I wouldn't advise doing this, as it looks bad on your credit file (looks like the bank is lowering it, not you).

Are you mixing up the overdraft limit with the overdraft balance? Anyone looking at a credit file would expect the overdraft balance to reduce, and be alarmed if it doesn't over a longer period.

thebritishbloke

Ed-1 wrote: »

Can't see how it would look bad on a credit file - the limit is staying the same, it's just the debit balance that's getting lower.

Archi_Bald wrote: »

Are you mixing up the overdraft limit with the overdraft balance? Anyone looking at a credit file would expect the overdraft balance to reduce, and be alarmed if it doesn't over a longer period.

My bad, I thought they were talking about their limit. Apologies!