Expiring Graduate Account

Superhoopza

Hi, I posted on the consolidating debt page a few weeks ago and got some advice and really opened me up to the ideas. I was very nearly talked into an IVA so very happy I avoided that.

Essentially I have about 4k (at the moment without further interest) of payday loans and I got desperate and went to my friends who very very kindly provided me with 2k of it. I now have a budgeted and plan and things are looking better. No surprise my credit history is now shot to pieces and I failed any attempt to get a consolidation loan.

My issue I've just come across though is that I have a £2k overdraft on my graduate account which will end in mid July. I won't be able to pay any of this off as any extra funds I save are going towards paying my payday loans off.

What would be my best options? Should I first speak to Santander in a couple of months when hopefully after reducing my number of active loans and overall debt, my credit score will go from very poor to just poor. Or do I speak to them ASAP and tell them what's happening and see if they will agree to keep the overdraft limit if I move to a standard current account with a plan of reducing it by say £350 a month so it's gone in 6 months? If they credit check me I will fail, as will any bank I apply to for an overdraft facility.

Is there a right or better answer here? I know with an arranged overdraft facility I'd pay £1 a day but I can live with that on the aim of clearing it all.

My thinking of waiting 2 month's before going to the bank is that if I go to them then with bank statements showing my income and expenditures (minus paying off loans/friends), that my spending is under control and they won't see anything they like (holidays paid for or gambling deposits).

Any help or advice would be massively appreciated.

Thanks