Thought I had a plan...

tambus

Im getting made redundant this year so reviewed my finances :-

Overdraft £2500 £31/month
CC 1 £4000 £100/month
CC 2 £3500 100/month

Cutting back everywhere, reduced Virgin package, better deal on gas etc & thought I would blitz the cc's.

Paid a bit extra this month as no council tax, but problem is my overdraft is being cut from £2500 to £1200 month in March :mad:

I was doing well as my debt at start of January was :-

Overdraft £2500
CC1 £4175
CC2 £3632

Not got a lot of options because its well known my work is shutting so my options for finance are limited.

Any advice would be great.

Tixy

Good that you'd already at least started to make some cutbacks. You obviously aren't going to be able to repay the 1300 so I would suggest you set up a new bank account with a bank not connected to any of your creditors and have your wages / any income moved to that account.

Once this is done you'll need to write to the overdraft bank and offer to repay the overdraft in installments you can afford. if either of the cards is the same bank they may do the same and close that account as well.

tambus

Thanks, all my debt is with the same bank... guess I will need to go looking for a new bank.

Tixy

I think so. Its likely its going to end up having a negative effect on your credit file but that would seem to be unavoidable in your current situation.
Good luck with job hunting.

tambus

Only good thing is I probably wont be paid off until the Autumn as my work is closing in stages and my redundancy package will clear my debt.

Tixy

In that case I wonder if it might be worth asking your bank if they will reconsider your overdraft and keep it at the current level (or only reduce to 2k or something). I would still set up a new bank account first just in case but can't hurt to try.

tambus

I will phone them up again at the end of the month (after I have been paid) as the woman on the phone today said they could only offer me overdraft of £1200 but that could change?
I then got offered a "great loan for existing costumers" but might try and haggle the overdraft and maybe offer to reduce by £100/month.