Money worries are never fun, especially at the moment. During these difficult times, it’s more important than ever to keep on top of your finances. However, it’s easier said than done. Many people have to borrow money to stay afloat, yet then struggle to pay it back; it can be stressful and upsetting. However, it’s not all doom and gloom. If you need Lloyds Bank debt help, for example, there are plenty of options available. We take a look at how to keep debt collectors away, some frequently asked questions, and how to deal with your debt. 

It’s not your fault. Complaints to the Financial Ombudsman have risen this year from 830 to 2,006, so it’s safe to say that you’re not alone.

Deal with your debt today and feel amazing tomorrow.

When is my debt too much? 

Not all debt is bad. Quite often, it’s the only way of buying a house or car. When you can make small monthly repayments, the situation doesn’t seem too bad. However, when things start escalating, it can soon become untenable. 

Quite often, people talk about two key ideas; being able to ‘service’ the debt, and your debt-to-income ratio. To service a debt, you essentially need to have the means to make payments on the principal and the interest of the money you’ve borrowed. 

Your debt-to-income ratio is the total debt payments and interest owed each month measured against your income. So, if you earn £2,000 each month but owe debts of £1,000 each month, your debt-to-income ratio is 50%. Anything more than 40-45% is considered high. 

Whether or not your debt is too much often depends on these two factors. However, each circumstance is different, so only you can truly know. 

Don’t worry, here’s what to do!

You could get rid of debt collectors by writing off your debt. I’ve put together a 4 question debt calculator which will tell you if you’re eligible:

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This 4 question debt calculator will tell you if you’re eligible.

What is the total amount of your debt?

What should I do about my debt?

It’s important not to panic about your debts, even if they’re mounting. People sometimes try and ignore the fact that they owe money, and this doesn’t help either. The best thing you can do is face up to the situation and start making some changes. 

You should work out exactly what you owe and who you owe it to. From there, you can start to understand how much you can afford to pay back, as well as seek out other options. As we’ll see, there are several methods you can try to deal with your debt. 

Will they send debt collectors? 

If you’re looking for Lloyds Bank debt help, you might be worried that they’ll send the debt collectors to your home. In reality, this is unlikely to happen unless you continue to ignore the situation. Many businesses will eventually pass your account on to debt collection agencies. However, they will usually try and contact you several times before this happens. 

Eventually, they will run out of patience, however. If this is the case, the debt collection agency will contact you instead. If they fail to recover the money, they will potentially pay you a visit at home. 

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how to debt

Is all this information starting to feel overwhelming? Don’t panic! I’ve put together a 4 question debt calculator so you can quickly and easily find the best solution for you. Answer the four questions now.

How can I avoid this? 

There are several things that you can do to avoid a visit from a debt collection agency. First and foremost, you should contact the bank (if they’re the ones you owe money to). Usually, many financial institutions will have procedures in place for helping those with debt. 

The next thing you need to do is start to repay some of what you owe. This can seem like an impossible task sometimes, but there are ways of doing so. You might be able to agree on a repayment plan that sees you paying back small, affordable sums each month. If you agree to do this, the debt collectors will usually back off. 

Does Lloyds Bank offer debt help?

For those seeking Lloyds Bank debt help, you can head over to their website. On their money worries page, you’ll find all kinds of way to get help with your finances. As well as a money health check, they also have some direct support as well as free, independent help. 

Whether it’s for your credit card or another kind of debt, many banks are being particularly patient at the moment. The coronavirus pandemic has hit everyone hard, so you’ll find that you can get help from many places. 

Where else can I get Lloyds Bank debt help? 

As well as the help offered by Lloyds, you’ll also find a variety of other places that can help. At MoneyNerd, we have a variety of articles on getting debt help. No matter what your issue is, you’ll find some handy tips to get you started. 

There are also plenty of independent charities and organisations. StepChange is a good place to go for debt advice, as it National Debtline. You’ll also find that Citizens Advice offers a variety of options for help and support.   

Can I borrow money for Lloyds Bank debt help?

There are several ways that you can borrow money to get Lloyds Bank debt help, although many of these depend on your financial situation. For example, an individual voluntary arrangement can help you repay your debts over five years. Anything left at the end of that period gets written off. 

Similarly, a debt consolidation loan helps you to pay off all of your existing debts and just make one regular monthly payment. A debt management plan gives a similar level of flexibility. 

What about credit card debt? 

Again, Lloyds Bank offers some credit card debt help and information on their website. You might also want to consider something like a balance transfer if things are tough at the moment. This would see you move your balance to a 0% interest card, meaning you can repay what you owe without getting further interest. 

Final thoughts 

So, that covers some of the main FAQs about Lloyds Bank debt help. As we’ve seen, it can sometimes be daunting when you owe a lot of money. However, your best bet is to contact the bank directly, as they might be able to help you come up with a plan to manage things better. 

If you ignore the warning signs, there’s a chance that they will call in the debt collectors. You can avoid this by continuing to make regular payments and getting in touch with Lloyds. 

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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