How do I solve my debt problem

Joe_b_4

Hi Guys.

As you can see, I am a newbie so please go easy on me!

I have an ongoing money issue and would like some ideas on how to deal with it. It’s been stressing me out for a while and am gradually sinking deeper into debt. I will try and give you as much information as I can. If I miss any key bits out, please let me know.

I have been banking with Natwest since the age of 14. (I’m now in my early 20’s). In 2005/6 I lost my job and had some direct debits which I was still required to pay (mobile phone contracts etc). However because I didn’t have any money coming in I went to Natwest and asked for an overdraft. I originally asked for £100, but they said (because of my account) they would have to set it at £500 minimum. – I obviously wasn’t going to turn that down!

I ended up spending most of this, but knew I had to leave a little in reserve for my direct debits, which I did.

Over time I had a few more jobs and managed to pay back some of my overdraft. However I wasn’t able to clear my overdraft before November/December 2008 when I lost my job again and had no money coming in.

So I went to Natwest and explained I had lost my job and still need to pay my monthly direct debits. They agreed to increase my overdraft to £600.

Then, in February 2009 things got really bad at home so decided to move out. I ended up living in my car for 10 weeks. Within this time I went to Natwest again and explained that I was now living in my car and was worried about my overdraft. They put me in touch with their debt people and after speaking to them they said I had to pay £30 per month. My overdraft was now just over £800.

So, I managed to pay one instalment of £30, but haven’t been able to pay any since. I have now been able to move into a supported housing project and I am also now registered for JSA, so hopefully I can start getting into some kind of normality and start paying off my debts.

My overdraft has now had a few more charges on it and stands at £880. I am planning to go to the Citizens Advice Bureau this week as well for ask for advice.

The questions I have are;

• How should I go about paying this off? - Is there any way I can freeze the payments until I actually find a job and home? If so how do I go about doing this?
• I feel I was taken advantage of at a time when I was vulnerable. Is there anything I can do about this? After all, who in their right mind gives money to someone who has no means of paying it back? Worse still, who would then increase that debt to someone who was homeless!
• Apart from the Citizens Advice Bureau, who else could I call to help me?

Thanks for listening to me, I appreciate it’s a long post.

Ames

On the second point, you don't have much chance. I'm bipolar and due to an episode took out a £7k loan when unemployed. They told me that they'd broken their rules by lending to me as I wasn't working, but CAB said there was nothing that could be done about it.

For the first point, pay what you can afford, they can't have what you don't have. Even if it's just £1 a month then you can prove that you've been trying to find a resolution.

There are also other organisations, CCCS, Payplan or Christians Against Poverty can help.

Shelter can help with your housing problems and should be able to help with the debt problem as well, I think they should be your first port of call really.