Really struggling

Milan0

Hey all,

I've used this forum allot to research things for myself and family and friends but I think I may need to ask a question this time and I hope someone can help or point me to the correct place to post.

I'm in around £5000 worth of debt and I'm struggling to pay it off as the interest is killing me.

I have a £3500 overdraft which is already £3600 overdrawn so i can expect a lovely charge at the end of the month and i have 3 pay day loan that I took out to live (eating etc)

I have read up on DMP and it looks a good option but i have also seen that some people don't get on with them.

I can afford about £150 a month to pay these debts off (once the interest has gone away) so was wondering what the first step i can make to get myself debt free.

Thanks.

lhead123

Talk to Step Change or Payplan. They can give you loads of advice and help you work out what your best option would be. They are both charities and won't charge you like other companies if you choose to use them x

National_Debtline

Hi Milan and thanks for posting.

The very first thing I would do in your shoes is to open a brand new basic bank account somewhere unconnected to your current debts. Move your salaries/benefits/any essential Direct Debits across to this new account but do not provide the details to any of your creditors, especially not the payday lenders.

Based purely on the figures you quote above, a (free) DMP may well be a sensible option. Some people like to manage their own negotiations, while others are happier handing the responsibility over to a third party - each to their own. Do get some advice from one of the reputable free services out there first, though.

Dennis
@natdebtline