Large amount of debt and don’t know what to do

Har4569ni

I want to post this to get some advice. I currently have about 45,000 pounds in overdraft and credit card debt. I have swapped the credit cards to zero percent. I have tried to pay back some of the overdraft money but the bank won’t pause the interest charges so I face 140 a month on one account charges and several hundred on another account. I have tried to apply for a mortgage increase but have been refused I want to know has anyone has any advice or has been in a similar situation. For context I am 50 and not able to work anymore due to health conditions. 

Grumpelstiltskin

OK One thing you can do quickly is open a basic bank account with no overdraft with a banking group you don't owe money to. 

Change your income to it ASAP and manually transfer all vital direct debits, don't use the  banking switch service.

Cancel all debt payments and breathe.

itsthelittlethings

It’s probably good that you didn’t get approved for the mortgage increase as the advice is usually don’t turn unsecured debt into secured debt. Keep posting here, there are a lot of very knowledgeable people who can support and advise you.

One good thing to do is to fill out an SOA so that people can have a look at your budget and advise. Hopefully someone can provide a link.

Har4569ni

I have switched all accounts to be out of use but keep getting charged interest on the overdrafts that aren’t in use. Thank you for the advice I will fill in the SOA 

Har4569ni

SOA 
Household 
2 Adults 
2 children 
Monthly Income (Household)  
Wages £1700
Assets 
House Value £200,000
Mortgage Balance £52,000

Monthly Outgoings Per Month 
Mortgage £620 
Car payment £350
Credit card payment £170
Personal Loan payment 180
Credit card 2 payment 50
Monthly Interest payments on overdraft £130
Monthly interest payment Account 2 190
Total £1690

Current Balances 
Overdraft 1 £5000
Overdraft 2 £19000
Credit card 1 £8000
credit Card 2 £ 1000
personal Loan £ 8000
Other Borrowings £3000

Har4569ni

Sorry Other Exspenses 
Life Insurance 60
Car Insurance 70
Car tax 20
Phone Bills (2Phones) £ 50
Rates Bills Monthly £150
Wifi £30

itsthelittlethings

https://www.lemonfool.co.uk/financecalculators/soa.php

Here’s a link to an SOA. Format for MSE.

itsthelittlethings

The first comment I would make is are you not entitled to some benefits? Or have you not included them. Your income doesn’t look right for a family of four. Also how on earth has a bank given you an overdraft of £19000? Is it a business overdraft or something?

Har4569ni

Yes that is my wife’s income which is our only income at the moment.  I have had this personal overdraft for nearly 20 years now. 

Grumpelstiltskin

OK get a proper SOA completed, the overdrafts just become another debt when you have stopped using the accounts, but it  appears we need a lot more explanations of your situation.

ManyWays

We do need a full SoA to see theextend tof your problems. Please list the lender's names and what are the 2other borrowings"?

If you are unable to work you may be able to get some benefits, as a minimum you should be getting child benefit for the children.