HELP! Desperate to get out of debt! Throwing money down the drain on overdraft fees!

sophieramsden

Halifax has just altered it's interest rates on overdrafts to fees instead, meaning I pay £72.50 a month on £3250 overdraft facility.

My income is £1500 a month and outgoings to survive are £1250
(rent, travel, tax, water, gas (winter not included), electric, bare minimum of food, phone, overdraft fee)

How do I clear my debt on £250 a month? (£8 per day) Hopefully you'll agree this is not much for last minute necessities and not realistically classifiable as disposable income?! Or is it?

Halifax suggested my only option was a consolidatory loan at huge interest - NO THANK YOU!

The Money Expert has said I can pay them £150 a month for debt settlement which would entail:
Opening a new bank account with another bank - cease using Halifax
Incurring a possible bad credit listing
They pay Halifax £1 a month and negotiate a settlement to the effect of half my agreed overdraft over 6-11 months.

Is this true? Risky?

PLEASE HELP ME!!

justjohn

get a 0% interest visa card?

But how did you get in the debt in the first place and was it avoidable(you do not want to get in this sittuation again)?

sophieramsden

It began because I was living with my ex partner and when after 8 years it transpired it wasn't going anywhere I had to leave his flat that he owned. I therefore had to take out a sizeable overdraft to live somewhere £1500. They offered me £1700 which I thought could be useful.
Then, over the last couple of years, redundancy, unexpected costs the figure just grew... and here I am!

sophieramsden

I didn't notice the bit about the 0% visa card... presumeably you mean jumping from bank to bank with 0% until I have paid off the overdraft?

Won't be making the same mistake again of putting my all into a relationship or his mortgage, no!

justjohn

Get a couple of 0% visa cards, transfer your overdraft too them .
Destroy the cards if you think you may use them and run up more debt.

hope this helps