Author Topic: debt and overdraft  (Read 1610 times)

debt and overdraft
« on: Sep 23, 2009, 03:58:23 PM »
plse help.
due to severe illnesses we will be nothing other than on benefits.
one debt collector is harrassing and i'm now worried also that the bank our benefits are paid into will 'pull' the overdraft and so we'll have no money for bills.
all the other creditors are ok despite us only able to pay very minimal amounts.


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Re: debt and overdraft
« Reply #1 on: Sep 24, 2009, 06:01:33 AM »
Hi there

Open a new account as soon as you can - Co-op's cashminder always seems to have good reviews, or the Post Office may be more convenient - and speak to the DWP as soon as you can to maybe have the payment go by cheque instead.  Once you have done this, contact your current bank to explain your current difficulties, cancel your DDs & SOs so that the bank doesn't charge you - and make contact with the people that you are due to pay to reduce the liklihood of them charging you

After this, get some advice about what solutions are available to you from a debt advice charity - CAB or Debt Advice Network or once of the others.  Let your bank/creditors/service providers know that you are doing this also.

If you are experiencing temporary difficulties, perhaps a Debt Management Plan can help but speaking to someone and providing details about your circumstances ASAP will help you to make a decision for the solution you need to enter.

Very best of luck.
Angela Rosler
Insolvency Manager  e: [email protected]

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Re: debt and overdraft
« Reply #2 on: Oct 05, 2009, 12:46:42 PM »
1) Excellent advice from Debtwitch. Open up a new account ASAP.
2) Consider applying for a "debt relief order". Google it :)
3) If you do not quallify for a debt relief order then bankruptcy is an alternative option to debt management. However I feel you may be one of the unfortunate people who "cannot afford to go bankrupt".

I heavily advise you to book an appointment with the CAB and get the ball rolling on a debt relief order as you can eliminate ALL of your debts for £90 (in 6 monthly installments of £15) payable to the CAB.

Best of luck!
Raphael Gilbert
Head of Insolvency Divison www.ban