This is where to post your first questions about any debt problems you have
By Mr lee.
#33326 Hi.
I have stupidly ran credit card debts of 35K on 5 cards. I don't know how its got this bad but that's where I am.
I have no other debts apart form the usual mortgage etc. I haven't faulted and my credit score is not bad.
but I have to stop ignoring it and deal with it. I have attempted stepchange but haven't had the balls to go ahead with it. I have an overdraft and they recommend changing banks. I think this is what's stopping me.
with my debt would stepchange really help and how easy is it to deal with them?. how easy is it to change banks?...
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By Hayden
#33327 Hi Mr Lee and welcome to the forum

From what you have said I understand that you are a home owner. As such the options you will probably need to consider are a Debt Management Plan (DMP) or an IVA. I assume that step change has discussed both of these options with you?

In a nut shell with a DMP you would need to continue paying your surplus income towards your debts each month until they are paid in full. With an IVA the payments normally last 5-6 years after which any remaining debt is written off.

The best solution for you will very much depend on the amount you can afford to pay towards your debts each month (your surplus income). However if you can pay at least £100 then generally speaking an IVA might well be better as it gives you a fixed end date.

In terms of your bank account which ever solution you chose if you owe your bank money you are probably going to have to open a new account. This really is not as big a deal as it sounds. You can read more about it here: New bank account before an IVA.

In terms of Step Change all I can say is that they are a very large organisation. As such sometimes you can feel like you are speaking to a call center and you are just a "number". If you would like to speak to a different debt advisor and get a second opinion on what Step Change have told you then I recommend calling Beat My Debt and speaking to James Falla. I know he is incredibly helpful and easy to talk to. You can contact him on 0800 077 6180.

I hope this helps :)