Overdraft fees

Burt_Ring_73

I am with Lloyds and have an overdraft of £2300. They recently changed the way they charge and now I am charged a daily fee based on how in the overdraft i am. Well by the end of the month and all the way up to the limit.
What can I do? the charges are therefore nearly £60 a month. I am not eligible for a loan (just had a car loan) and cannot transfer to credit cards.
I would like to reduce it by £100 to £200 a month but being realistic i also have a holiday to pay for plus new car loan.

fatrab

Hi and welcome to the forum.


Post an SOA and I'm sure you'll get some comments on where things are going wrong and can be improved, but if I can be completely honest with you - you owe the bank £2300, you've just borrowed more to buy a car and you've a holiday to pay for? You are living outside your means.


http://www.stoozing.com/calculator/soa.php


"Being realistic" you need to stop spending, forget the holiday and assess your financial situation. Quickly.


Sorry if any of that is hard to accept but it's the reality of your situation.


Overdrafts are just as evil as credit cards!

enthusiasticsaver

The new charges started in November and were advised last August. Why would you take out a new car loan before sorting out your overdraft? Same goes for booking a holiday.

It will take a while to repay it at £100-£200 a month but you should contact the bank and suggest that arrangement plan. Make sure you reduce the limit as you go. You may get them to agree to reduced charges but I don't think there are many instances of them doing that.

heartbrokengirl

Had a similar issue with Halifax on a much larger overdraft. Called up and explained that the charges were going to push me into some serious issues. I was a long time on the phone discussing the ins and outs of my situation, but in the end we agreed to reduce the overdraft to zero over the course of a year. Plus, they froze all interest on the overdraft. I'm three months into that agreement now and feeling positive that in nine months, it'll be done and a huge chunk of debt out of my life.

There is hope! Just stay confident when talking to them and have your financial details to hand so you can prove that you can maintain the agreement you make. Good luck!

spadoosh

Absolutely no point in looking at reducing overdraft fees if you cant curb your spending habits. Youre delaying the inevitable.

You need to reevaluate how you see money. The sooner the better.