Got to get out of this rut and need help!

Brynawel4

I changed over my bank account from Barclays to Abbey, but left Barclays with an outstanding overdraft of £850. And of course, I have now ended up using the overdraft every month with Abbey to the full £850. This all came about when I got divorced and had to go it alone. I have now got into the trap of pay day loans and currenyl owe about £400 on 3 different ones. I wrote to Barclays about the overdraft but they were no help whatsoever and didnt even want to accept what money I could pay each month. I am also incurring charges. Is there any way I can get myself back on track? I am just constantly worrying over all this and to make it worse I have now got into the payday loans rutt!!

Tixy

Hi

Have barclays actually recalled the overdraft and asked you to pay it all off? Are you paying anything towards it at the moment?
Even if they say they won't accept a monthly payment I would at least mak sure you put something in each month so that it shows you are not ignoring the debt but do want to start paying something back.

What is the situation with the payday loans? are you extending them all each month? its a bit difficult to advise without knowing more about your finances and how much you have available each month but if you are currently extending them all can you work on trying to get at least one repaid this month - do you have anything you could sell to raise money? or manage on a really lean month spending wise? Do you have anywhere else you could borrow money from at a cheaper rate than payday loans? eg a family member? a credit card?

You could possibly look into finding your local credit union, usually to borrow money from a credit union you need to save with them first but a few will specifically lend money to help people get out of the payday loan cycle.

Another possible option might be something like - http://www.moneysavingexpert.com/news/loans/2010/09/government-backed-lender-launched-to-help-low-earners although at the moment I think its only available in the west midlands.

Have you written out a statement of affairs to show your incomings and outgoings? if not this would be a good idea to see how much you should have available to repay towards your debts in total each month. Then we can help work out a plan with that info. Here is the format we use http://www.makesenseofcards.com/soacalc.html