Help with money situation please.

[canlget]

Over the last few years our financial situation has really taken a hit!
We've delt with job loss etc... we can now no longer rob peter etc...
Anyway, most of the problem is with one bank. Overdraft and loan. I phoned yesterday and tried to get help from them - maybe lower interest? They couldn't do anything really, even after going through our outgoings. Whatever they do , will impact our credit rating.
It made me think. Should l just start using our other bank account for wages - and pay them token amounts?
I really hadn't wanted to go down this route , and we'd like to pay them back. Unfortunately, as they won't work with us - we seem to be out of choices.
We both already work long hours. My DH does 50 and l go at least 30. Can't go more because of youngest dependent.
I'm worried that now l've been so candid about our struggles, they will take away our overdraft anyway. Really* leaving us in a mess.
The debt we owe is around 7k.
Any ideas?

Hmm that sounds okay to me.

Could you afford to have one salary paid into the bank you owe the money to and dhs salary into the other?

Be careful not an expert but banks can call back your overdraft they I believe have to inform you but they can call it in

Could you add it onto your mortgage or look at a lower rate rate loan. TBH I'd go to stepchange.

We don't have a mortgage. We rent from a HA.
I'm thinking they could get their overdraft whenever they'd like to.
I really expected more help- we haven't defaulted on anything and l've banked with them since 1988!

Paying them token amounts will also impact on your credit rating assuming you mean doing that with the loan as well.

The 2 best options for you would be looking into if you can get a consolidation loan for all your debts, but only if it will genuinely be affordable; or contacting Stepchange or similar and looking at options like a Debt Relief Order, IVA etc.

Yes, exactly if the token payment s will cause just as much impact as an IVA or DRO l might as well do that.
I feel a bit more secure that we will have a second bank account. At least our wages can go somewhere/ if things get tricky.
Thank you for all the replies.

Definitely do not get a consolidation loan. I would suggest you go over to www.moneysavingexpert.com to the debt free wannabe board. You should post up a statement of affairs and let the experts on there help you. There are representatives from the debt free charities on there as well as others with a wealth of experience in helping with debt issues. Good luck in sorting things out.

Just be careful. If you stop paying in your wages they can withdraw your overdraft. That will be much more expensive

Ok. Thanks for the latest advice.
I'll check out the money saving site too.

Welcome to Mumsnet, @Talise101. You could start your own thread and ask if posters have any good ideas.