Confused with debt help

[Kayleighfish]

Hi,

Admittedly posting here for traffic! But hopefully will get a mixture of opinions.

Over the past 12 months in particular, for various reasons, my debts have spiralled. I haven't miss any repayments, but I am constantly in my overdraft and over the limit on my credit cards. I have various loans but I am managing to pay these. However all my day to day living costs have gone on my credit cards and that's the vicious cyle I'm in. I don't think I was far off having to miss a repayment somewhere.

I decided to get some independent advice this week which was very tough for me to do, but it's done now.

The charity have been great in helping me see why I am struggling and where and to also offer options. However the options they have offered feel a bit extreme (to me) and have panicked me even more. They main one being a debt management plan.

I decided to talk to all my creditors individually before doing anything drastic. One credit card company has given me 60 days breathing space and stopped interest and charges in that time. Another has given me the same, but for 6 months, they will review my expenditure in 6 months and see if they feel they can restart minimum repayments at that point. I'm very grateful. I think this alone might be enough to get things under control.

All of my other debts are with my bank. I did the same with my bank - Natwest- that I did with my credit card companies, rang and explained I was having financial difficulties and had been dealing with StepChange, would they be willing to discuss any short term help before I took long term action.

They basically said no and I had to book an appointment for a Financial Health Check, which I have done. After looking through the email they have sent and having a Google, it seems more of a sales thing than a help/advice thing.

Should I ring them again or just wait for the phone call that's booked?

StepChange have also advised me for to open a separate bank account as most of my debt is with Natwest and my wages are paid into that account. I'm worried now incase they realise I am struggling and take any more money out of my wages than I can afford (I'm trying to clear my overdraft).

I've got myself into a bit of a state. Not sure what to do next. AIBU to cancel the call with the bank and just see if the 2 credit card help I've managed to get is enough to get me back on an even level, without involving the bank?

Thank you for reading if you've got this far.

Trust in the advice from stepchange, a debt plan is a good move, they can get most companies to freeze interest charges and st up a realistic payment plan. A relative of mine owed around £40,000 they froze the interest and the debt was cleared in a few years . They also stop companies ringing you

Unfortunately if you can't afford to pay your contractual amounts on your debts, your creditors will already know you're struggling, so there's no sense in trying to keep any of them happy at the expense of the other.
You need a plan where you pay affordable payments to all in an equitable way, whereby the ones you owe most to get the biggest share of any money you have after paying your essential expenses. This is an accepted way to repay debt and if a creditors takes you to court, the judge would confirm.
Your bank don't want this because they don't want to get just their fair share of what you can afford, they want to get first dibs and as much as possible. However they will know that this is usual practice and a court order would result in the same.
You should follow the advice to move your wages as they will indeed be swallowed by your OD.
If I were you, I'd go back to SC. Ask them to explain the options to you again and follow their advice. Which usually involves not doing your own seperate negotiations with your creditors. So no, don't calk anyone until you've spoken to SC.

Mumsnet can be very helpful with this type of advice but perhaps try Money Saving Expert Debt Free Wannabe site for advice from the board members who have all been through all types of debt and all kinds of solutions.
Some are volunteers at CAB, others are just general public with a history of debt ranging from severe to less so but they make you see that no matter how deep you are in and how terrifying it seems, there is always someone who has been helped with worse cases.
Best wishes Mx.

I’d also suggest Debt Free wannabe on Money Saving Expert. They have really knowledgeable folk who are generous with their advice and absolutely no judgement, and also call out posters who offer advice that isn’t relevant or appropriate. You’ll get sensible advice from people who know what they’re talking about.

open up a new account with the likes of monzo/chase etc and get your income paid into it in the short term while you decide what you are doing

Thank you for all your advice everyone x