I had an Lloyds bank overdraft in 2019 with the overdraft amount being £1350 maxed out by December 2019.
I had left the account alone for two/three months as the overdraft fees were basically ruining me (Adding to the £1350 overdraft),
i then received a letter from Lloyds asking me to phone them regarding this debt (This was January 2020).
I had phoned Lloyds and we went through an expenditure on the phone and the outcome was i was to make payment of £30 towards the debt for 6 months and then after the 6 months is up they would get in touch with me to discuss further options.
(There was mention in January that after the 6 months there was a possibility of a loan to pay of the remaining balance and then you make payments against the loan for however many years/months you choose.) It is worth noting that whilst i was making these payments they froze all interest on my account.
I have made every payment since January and have gradually managed to reduce my overdraft down to £1200.
My problem is that the bank have phoned as it now at that stage for re-discussion,
they have asked me to go through another expenditure and i panicked and over estimated things to make it look like i had less income; not loads but i was in a deficit of -£47.
Due to this they said they could not allow me to take out a loan as it would only mean i was borrowing more to pay of debt which they would not allow.
It then got passed over to another team and he said that i only had two options.
Take a one month break with all interest etc stopped and this will allow me to seek financial advice elsewhere,
or they said they would default the payment and i can then pay the minimum i can afford but the default would stay on my credit file for 6 years.
He mentioned that they wouldn't take any money off me to help clear the debt as i had a deficit of -£47 and that shows i financially cannot afford to do that option.
I have looked at the effects a default can make to your credit file and it impacts it tremendously.
Lloyds asked me how i cover my expenses every month and i mentioned that my Grandparents help me out sometimes with cash flow.
the gentleman at Lloyd's suggested going away and asking my grandparents if they could contribute money to me to help aid in my debt.
so that he could go back to the original team(I think collections team) and say she now has this ____
He is due to phone me on Thursday (Tomorrow).
I can afford to contribute probably £50-£80 a month but it would mean cutting down on fuel and some other expenses.
Its worth noting that i have a credit card with Nationwide maxed to £1000 too and this will soon be at the stage where they charge interest and i cannot afford to clear this either. Is this worth writing to them about?
Is there anyone that can advise me on what to do to help me pay as little as i can and avoid the default PLEASE, any help is really REALLY appreciated.
Thank you all in advance.