How do I get rid of a bank overdraft without Lloyds help?!?!?!

pnq06

Hi all,

It might sound like a really silly question but just how do I clear off my £3000 overdraft without the bank manager trying to talk me into a high interest loan or credit card, or is this the only way?

Its currently costing the best part of £50pm in interest alone but we are always in it, so income is £1300pm will only bring us up to -£1700.. Any ideas?

Any help is much appreciated...

Many Thanks

tigerfeet2006

You could always open an account at another bank with no overdraft and set up a standing order to your old bank to pay off the O/D a little bit each month.

Pop up your SOA here and let the clever folks here have a look to see if you are making all the savings you could. Check out the sticky at the top of the front page for newbies by MSE Andrea to see how to do this.

pania

ebay and amazon are the best ideas hon, if you don't understandably wish to rely on extra credit to get shot then the extra income can have it gone in no time.
also join the February £10 extra per day thread. you'll get lots and lots of ideas there. xx

Broken_hearted

You could ask they freeze interest for three months while you sort yourself out.

lauradora

Sounds like you do need a better deal on your rates though. The best idea as mentioned before is to open another account:rolleyes:

tyllwyd

Do you pay daily interest when the account is in overdraft? In which case, I'd have thought that leaving it at £3000 overdrawn and having your salary paid into a different account is the expensive way to do it, because you will be paying interest for the maximum amount for the full 30/31 days of the month.

One way would be to just give yourself a really strict limit - every month, sit down at the start of the month and make sure you know what you are going to consider as 'zero' for that month - which might be £2900 next month, £2800 the month after etc., so that you are giving yourself a plan about how you are going to pay it off. It won't work unless you know what target you are aiming for though.

hitback

I would definitely open another account to have your wages etc paid into, and then pay off as much as you can afford each month. I doubt whether they would freeze interest! The bank is not likely to help you out as this is how they make their money at the end of the day, and it's not in their interest to make it easy for you!!

fatbelly

See Martin's article

http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

If you can, open an Alliance & Leicester account and use their 0% overdraft facility to clear part of it.

Then try for a 0% credit card deal that offers a Super balance transfer. See https://www.stoozing.com for details.

Another avenue would be using a 0% purchase card to buy essentials and direct your income to clearing your overdraft.

However you're still going to need to increase your income or reduce your expenditure or both, if you are going to clear £3k within 12 months.

How about posting an SoA?