Advice needed on Lloyds current account

warrensean

I have had a planned overdraft of 1500 set up for a few years now and i've not been able to get myself in the green since.

Lloyds started charging daily overdraft fees when I was away travelling so I had no time to plan for it, when I arrived back I had no job but have recently found my way back into work now. The only issue is I start University in October for 3 years so will have limited funds again (not enough to pay an overdraft off).

I spoke to Lloyds previously and had my account put on a 30 day hold to give me some breathing space and to find a way to pay the overdraft off but I couldn't get a 0% credit card or loans due to my recent bad credit score rating.
I have spoken to Lloyds again and they can only offer me 1 last 30 day hold option, or to pay it off monthly within a year (which isn't possible as i'll be starting University in October) or it will go to the debt collectors if not paid in full by then.

I have asked about changing my current account to a student one but the advisors didn't seem to be very clear or knowledgable in that department. She did mention that because my accounts in arrears that the branch would just send me through to customer support again? I'm at the end of my tether and really just need to good advice on what to do next. I feel my only option might be to let my account go to the debt collectors..

Any advice would be great! Thank you

sourcrates

Hi,

If you dont have the funds to pay this off, and a regular payment plan would be unaffordable, your only other option is to offer token payments until your situation improves.

Usually Lloyds would move the account to collections fairly quickly, and more than likely off load it to a 3rd party debt collector pretty soon after that.

Just offer and pay, what you can, even if its just £1 a month.

DCFC79

Find a second job so you can pay the debt off or to make a dent.

National_Debtline

Hi warrensean


I'd advise you to start by completing a statement of affairs (SOA) so you can see what your income and outgoings are, and what you will have left over for the overdraft and any other debts you may have. You'll need to update the SOA in October when you start studying.


If you are not in a position to afford to pay the overdraft off over a year then you may find they will pass the debt on to a debt collection agency (DCA), but don't worry that is just another company who will deal with the debt. They're not a bailiff and will not be able to take your belongings. You will be able to use your SOA to make an affordable offer of payment.


You can complete a SOA here http://www.stoozing.com/calculator/soa.php. It's useful to post it back on here so you can get more advice on what options you have available.


Best wishes


Susie
@natdebtline