Newbie needing help please.

Hi all, 

I have recently made an irresponsible lending complaint to Lloyds, which they did NOT uphold, instead they blocked my credit cards, blocked from further lending and they will close my accounts on November 3rd. I explained i lost my mum 17 months ago and things haven't been so good since then, am I on antidepressants and have grief counselling. Mt overdrafts and loans have been taken out after my mum passed and I explained that I wasn't in the right place to be applying for them. ( i realise that is on me)

I currently owe them:
Personal Loan £5000
CC1 £2500
CC2 £500
OD 1 £750
OD2 £500

I have not missed payments on any of them, I have no defaults or anything. but.... cost of living etc is just crazy and I am now struggling with what I have left each month to make it last. 

I only have 2 other debts else where, Barclaycard £540 and Paypal Credit £500. 

I have tried to contact Lloyds but they wont speak to me until 3rd November when they remove my overdrafts. I am currently transferring £1.50 over every day to cover the interest that is accrued each night. They have said that if I have not cleared the overdrafts in 60 days from the 3rd November they will sell my debt to a collector... i am so unsure what to do as I cant afford to keep paying over £1.50 a day for the interest nor do I have £1250 to clear the overdrafts in 60 days. 

Any advice would be greatly appreciated. 


  • peb
    peb Posts: 1,680
    Name Dropper Combo Breaker First Post First Anniversary
    You will need to open a new basic account with another bank and make sure all your income goes into that account.  Suggest the coop aa you have no debt there.  Do not use the switching service.  You will then have to treat the Santander account as a debt, are you able to repay the debts?  Do you need to look into a DMP?  Lots of advice re the latter on the boards 
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,268
    First Anniversary First Post Name Dropper I've been Money Tipped!
    I think you will have to default if you cannot afford to live. Your credit record will be trashed until the defaults fall off your file which is 6 years but monthly payments will be affordable and interest stopped. Lloyds will probably sell the debt on. Do you own a property? 

    Open a new basic bank account and write to your creditors telling them you cannot afford to repay. Do a budget and work out how much you can afford to repay monthly. It is better that your cards are blocked as you won’t be able to run up more debt. If you do an soa (statement of account) we can help more. You can do a DMP through stepchange or self managed. 

    Hopefully the grief counselling is helping but in a way they have done you a favour by halting the borrowing now while it is under £10k. Was the debt affordable when you took it on? What grounds did you complain on? 

    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.
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