Urgent Help Needed Please!!!

kingp85

Hi im new to this site and would like some advice and help as im trying to save my gf from the Lloyds TSB seriously doing her over her student account as she has gone over her authorised limit of -£1,500.00. In may she went over her limit for about 2 weeks and then she got back under her limit and got slapped with a £60 charge, which took her back over it. she didnt have a job until a few weeks ago working in a bar but her balance reached -£1589 and she has spoken to the bank numerous times about how not to keep getting charged and they said dont use the account for any transactions. So anyway after her first week (last week & gets paid weekly) she had earnt around £56 which took her balance to -£1533 on the 10/08/2007 on the 14/08/07 they have sent her a letter saying that they have disabled her overdraft and said they will charge her 2.20% per month and the only way she can get out of it is if she takes out a loan with them for the overdrawn amount and pay it back at £39 for 53 months meaning a repayment of £2067 when as youre a student that is still hard. Aswell at midnite tonight she is supposed to get paid around £130 which would have taken her down to around -£1400 which would be under her authorised overdraft limit.

Questions to ask:
1 what will happen to that payment?
2. whats the best way to get around/stop this WITHOUT being trapped into a loan?

A) could i get a credit card with balance transfers and spread the debt onto that for the year? and just pay a handling fee? and which Credit card would do this for that sum of an overdraft?
try and get her to open another student account whilst she has a poor credit rating? or maybe myself?

Im so confused can someone please help???
I would appreciate it so much.

Paul

jay78

Your girlfriend needs to be better with managing her finances. I don't mean to have a go, but LTSB are just implementing their t&c's. If she can't manage an overdraft then they will take away the facility.

Now to deal with the problem. If she doesn't want to take out the loan how else will she be able to pay off the overdraft? If you are going to apply for a credit card and you have a good credit rating by all means apply for any of the best BT deals, Virgin, Halifax etc. You can just give them her account number.

With regards to opening a new account, do you know for sure he credit-rating has been affected by this? She should get copies of her credit report.

kingp85

Thanks Jay, yes she occurred this before I started going out with her and im trying to save her and i totally agree with you. Im in my overdraft but have never gone right to the limits.

I will sign up for expedian free trial thing, but i know that she has had to go to court before about another overdraft she had with Natwest before she came to Uni which would have had a definate impact on her rating.

Just tried applying for one. Im a student myself so will they allow students to get one? Im applying for it in my name with A & L and i have never had a late payment but ive never had a credit card before. Neither mine nor her families are well off but if they had a better credit rating i might ask them, the student loan we will recieve will deffo cover the money owed.

Thanks for your help.

jay78

I doubt you will get one of those balance transfer cards you need to have a good credit rating for those and the fact that you haven't had a credit card before is just as bad as having defaults because credit card companies cannot assess how you will manage a card. Even if you do get a card they might give you a low credit limit.

She should just take the loan and learn to manage her finances better!