Lloyds bank acccount, loan, credit card - can't make the payments

[twinkle1977]

Hi Everyone

My colleague at work received a phone call from his frightened niece last night.

 

she's 20, has an £8k loan with Lloyds, and £5k of credit card debt (with Lloyds, Tesco and Dingles). She also banks with Lloyds and has no other bank account.

 

She's struggling to cope financially and has been on the brink of having a break down. She's defaulting on payments.

 

What advice do I give her? What letters can she send to her bank and creditors. She's petrified so we need to get her started. Its been 6 years since I was in this position so its gone a bit cloudy!

 

Thanks

[PGH7447]

Hi Twinkle

 

Fisrt tell your niece it aint that bad.

 

OK I suggets she writes to the creditors and attempt to get a payment plan in place, while she is still in the early stages of going under.

 

There could be a good chance they will agree to thsi

[twinkle1977]

Hi

 

Any letter templates out there, that I can forward to her to use?

 

Anyone had any luck with Lloyds in the past? do you think she should open another account in case Lloyds get nasty?

[PGH7447]

it would be a good idea to open a parachute account now and get her wages etc paid into it, if they turned nasty

 

Parachute Account - Consumer Wiki

 

I will come back with a template letter in a bit

[twinkle1977]

Thanks for the link. If you could send over any templates, then that would be great!

[PGH7447]

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

letters b or c

 

sorry for the delay got sidetracked with other stuff

[odds]

What debt does she have with Lloyds ? I hope she gets better treatment/advice than I got from them, no tea and biscuits, and I went to see them BEFORE I got into difficulties expecting some kind of help. I was actually told they wont do anything untill you actually default on Loan/CC

If her account with Lloyds is one that she pays extra for (platinum, gold) with overdraft facilitiy, downgrade it to a basic one immeadiately so they cannot use the overdraft to take payments from it

I would suggest as above, open new bank account asap and cancel all DD's, get wages etc paid into new account.

Keep us informed and good luck.

 

Pete.

[twinkle1977]

Thanks. I sent my work colleague off with some letters to send to them and the parachute account details for her to open another account. Actually, this was me 6 years ago with Lloyds.... it seems so long ago and my defaults disappear in April (fingers crossed). I just remember it being really worrying times! I have given the web address details of here to my work mate, so hopefully she'll get some peace of mind soon! I'll keep you all posted. Hopefully come monday she'll know better which way to go!