£4200 Overdraft maxed out - HELP

Mr.Wrong

Hey everyone, I know this annonymouse but still took some self beating up to post.

Basically, I got approved for a planned overdraft with my lloyds banking acc about a year ago and at the time I was gambling heavily, as soon as my wages came into my account I was gambling them. Win or lose I couldn't stop I was selfish and out of control, I quickly realised i could increase my overdraft amount and before I knew it I was £4200 overdrawn and didn't have a penny in my pocket.

Needless to say this made me self ban from all methods of gambling ( please don't judge me as to why it took so long for this to happen - addiction is hard to fight)

I've been paying the overdraft fees of £63 every month up until December when money got really tight and hasn't been right since.
I'm now -£4336 and I have lloyds collection department calling me every day to which I don't answer because my partner is with me most the time out of work and she has no idea.

I am going to answer them at the next convenient time when I am alone -
Current situation, I am in no position to make any payment today, though I could maybe afford £20 per week as long as the account and fees were frozen.


1) what should my approach be?
2) what attitude should I have towards them?
3) how likely am I to have it frozen and I start paying small increments?

Many many thanks everyone.

Pixie5740

Is your income paid into the Lloyds account? If so then get yourself a new current account outside the Lloyds banking group and start having your income paid in there.

Is the overdraft your only debt or are there others as well?

Well done for taking steps towards getting a handle on your gambling problem.

-taff

Mr.Wrong wrote: »

1) what should my approach be?
2) what attitude should I have towards them?
3) how likely am I to have it frozen and I start paying small increments?

Many many thanks everyone.

1 - get in touch with them, open another account
2 - helpful as far as what you can pay goes
3 - possibly, but possibly not. Be aware they will likely default you which will impact on your credit in the future.

Best to tell your girlfriend too, as if you have hopes of getting a mortgage, she needs to know you have/had a gambling problem, because it'll also impact your plans together, and her possible finances depending on whether they are linked or not.

Hope you're getting some help for your problem.

EssexHebridean

If you're wanting to sort your situation out Mr W, you'll get no judgement here, only advice and support.

Agree with Taff - you do have to take a deep breath and tackle telling your OH about all this - if she finds out down the line then she'll be furious - now she'll likely be upset but if you can show you're taking steps to sort things out it's to be hoped that she'll work with you to help.

Put yourself together a Statement of Affairs (SOA) - the link can be found in the "Sticky" post at the top of the board. That will enable you to see where the money goes currently, and whether there is anywhere you can make savings. It's a good starting point for budgeting too. If you post the SOA in here we can also take a look and see if there are savings that you can make that you've missed.

Mr.Wrong

Thanks so far guys.
I have a phone bill from two years ago which is already being paid slowly but surely.
I owe my mother and my friend and my gf already.
Incoming is (new job in two weeks) will be take home £440 per week

Outgoings each week are
Rent 75
Mother 25
Friend 100
Partner £50
Phone bill 15
Old debt 7.50
Council tax 17.50

So £130 roughly each week spare
But I haven't got a car yet or any savings.
This is before any agreed payments for lloyds

I have my wages paid into a different bank account

dieselv2

use http://www.stoozing.com/calculator/soa.php and format it for MSE

EssexHebridean

Yes - you need to get the whole picture, in one place. Sorry - it's a bit brutal, but it's the only way you can get a full picture of where you stand. On the face of it £130 a week spare is a great start - can you manage without a car? There are several issues with getting one that I can see - firstly you haven't got money to buy it in the first place, secondly by the time you take account of the running costs, that's going to swallow a chunk of that surplus. It's not reallhy a case of "can you manage without a car" - but "you can't afford a car at the moment" if we're honest, I think?

suebgriseum

Hi no body judges.

Write to lloyds request all communication by letter only. This will stop the phone calls.

Tell the girlfriend, yes not nice but you need to be honest.

Offer lloyds an amount per week towards the overdraft, say £20 (yes its low but shows you are willing to pay) this will delay them doing much else at the minute, if they decide to go to court the judge would deceide the amount.

Can you get additional overtime,whats the £100 friend amount for and mother £25 amount for how long term are the payments ?

Maybe if your mum is willing , discuss it all with her, sometimes you just need to let it all out it really really helps.

On the positive you have spare cash each week. It is l possible to dig your self out of the hole, bit by bit.

Well done for stopping the gambling you have great control so you can control your money too!

consultant31

I have little that I can say with regards to how you sort out your debts but I would like to reiterate what several others have said already....you simply HAVE to tell your OH, and it ought to be sooner rather than later.

My daughter remarried a few years ago and it wasn't until after their first baby was born that she found out that he was addicted to gambling and had got heavily into debt.

Eventually, she had to throw him out because he never brought any of his wages home. It was the worst time - for all the family really, because we were all fond of him.

It took losing his wife, child, home and eventually his job, to bring him to his senses. He banned himself from all online gambling sites, bookmakers shops in every place he could reach and joined Gamblers Anonymous and it has been 13 months since he had any sort of bet.

He is back within the family now, they have another baby on the way and everything is rosy. However, looking back, he now realises how lucky he was that it came out when it did - their situation would only have got worse and he would most probably have lost them all for good.

Please tell her....if she loves you she will stand by you and if she does a runner, then she didn't love you enough in the first place. Prove you love her by giving her the opportunity to help you.