[Jayjay027]

I am in a bit of trouble and don't know who to turn to for help.

I have an overdraft of £750 on my bank account. I haven't been out of my overdraft for over a year, but over the last 6 months, I lost my job and wasn't able to find a new one, so the situation just kept getting worse. Now I am over my overdraft limit by almost £500 and every day the bank is charging me for this, and I feel that there is no way I can ever get out of my overdraft without winning the lottery or something.

On top of that, I have a credit card debt of £1000, which I haven't started paying yet because I can't afford it.

AND on top of that, I have a loan to pay to the credit union of £1500, I always paid direct debit but had to stop the standing order a few weeks ago because I simply cannot afford it.

I don't even know where to start to try to get out of this debt, my parents are in a similar situation and can't help me, no one can lend me money, I have to do this alone.

I started a new job yesterday, the money isn't great but its full time and better than nothing, so hopefully things will start looking up. But can anyone help or give advice on what I should do?
I can't go on ignoring the phone calls and letters for much longer. I am petrified about this. Please please help me.

[Curlyben]

As you are in Northern Ireland, least I assume you are by the use of £, help is not to far away.

Phone calls are easy to deal with. Simply state that you require everything in writing for the avoidance of doubt.
Least having letters reduces the stresses.

Now how to tackle the rest.
Well the bank, while a bit of a pain, should be straightforward.
The charges that have been levied are currently under investigation by the OFT and legal action to assessment of their fairness. These basically can be reclaimed as the OFT has already indicted that they are unfair.

The card and Union, have you contacted them and arranged a reduced payment plan ?
If not do so now..
The credit Union is more likely to be reasonable, but some cards can be a pain.
Not to worry, as long as you take the reasonable route and keep them informed there's little they can do.

Are these debts still with the original creditors or have they "sold" them to debt collectors?

If they really won't play reasonable, then there are other steps that can be taken.

[micheha]

Don't ignore the phonecalls or they will just take more drastic steps. Take the calls and tell them that you are working on a plan to repay them and will get back to them in __days. GET ANOTHER JOB FOR THE EVENINGS and use all the money for debt repayment. SELL EVERYTHING you can and use the money for debt repayment. Cancle your home phone, cable, internet services and repay debt. Stop eating in restaurantsw and taking cabs. BE RUTHLESS. Read the book, "Total Money Makeover" and follow the principles. You can do it!

[Jayjay027]

No the debts haven't been sold to collectors, they are all still with the original creditors. I was going to set up a new account with a different bank, get my wages paid into that, and set up a standing order to pay off the people I owe, and only pay what I can afford each week or month.
This way I'll be out of my overdraft and will only have direct debits and standing orders.

Does this sound like a good idea?

Yea your right, Im in Northern Ireland.

[Curlyben]

Jay, that sounds like an excellent plan.

You need to contact your creditors with a payment plan, backed up with an income and expenditure sheet.

There's some useful information, including letters and I&E sheets here: MANAGING YOUR FINANCES - Legal Beagles
http://www.legalbeagles.info/forums/...ad.php?t=14205
http://www.legalbeagles.info/forums/...ead.php?t=5102