Paying off an overdraft

emptypocketz · 12 May 2007 at 7:08PM

Hi everyone,
I am a regular moneysaver but have used another nickname so my boyf doesn't find out.

I had consolidated my debts last year but since then i have accrued an overdraft of £700. I know this doesnt seem a lot compared to most people's debts but it drives me mad to see my account being in the red all the time. I got back in the overdraft due to not saving for christmas, upcoming holiday etc. I think I will potentially find it hard to pay off the overdraft with my wages alone - but I want to get rid of it before this christmas. Are you all always in your overdrafts too?

Can anyone suggest any ways I can make £700? I have just changed insurance through Quidco so hopefully that's £125 towards it!

Many thanks

affordmylife · 12 May 2007 at 7:52PM

I have been in my overdraft since we moved house Christmas 2004! At is worst over £2000 and getting £30 charges everytime I did a transaction. It's now hovering around £700 to £1000. It was driving me crazy just like you but I changed my job and am now much better paid plus I absolutely love it which is fantastic.
As i receive five different amounts into my account each month I have decided to try a new tack this last few months. I have my main wages approximately £450 paid into my spends account which is for days out with kids food clothes presents etc. In my other account i have all other pay paid in this is maintainence for older children, child benefit and other smaller wages. Apart from direct debit for my sofa and pet insurance nothing else comes out of here now so the overdraft should swiftly come down.
This has actually changed the way I think about my money. My spends is money that is actually there and I can budget with - previously unheard of as was always in overdraft. My other account of course currently remains overdrawn but it is not my current account so it is really out of mind now and will sit there quietly gradually coming down into credit. How cool is that!
Is this something that could work for you or do you only have one amount going into your account per month?

Fizog · 12 May 2007 at 8:19PM

Packed lunches, not going out, not buying any more clothes, shoes, unnecessary make up, hair cuts, nail extensions, massages, nights out with the girls...oooh the list is endless I do none of the above, but have two teenagers, a colossal mortgage, a husband who drifts in and out of employment AND I live in London where everything seems to cost 3 times as much !!!
You should be able to clear your overdraft in a couple of months easy... I do remember those carefree days of no responsibility, endless nights out and popping into the pub on the way home from work...buying things on a whim , holidays, weekends away, ... I get very excited if we can have a take away!!!
A big step would be to log everything you spend... from gum to shampoo, dry cleaning.. save your receipts then you will know where you are spending your cash.

I apologise big time of you are struggling and I am being sarky!

postingalwaysposting · 12 May 2007 at 8:48PM

welcome emptypocketz, i can understand the situation you are in, its the first ever month i have had to use my overdrafts (but that through my own mistake of no cancelling a standing order). The way i ahev seen another poster try and lower her overdraft is setting herself a target (say £10~£25 per month) in which to lower yher overdraft then i presume once she reaches that prob before pay day she phones the bank and permently lowers that down by the set ammount. But in order to do that you need to be frugal, you need to spend less and ultimately cut your extra spending. i am not saying it will be easy and you will slip up but if you lower it by £25 a month (so thats £3.50 a day if you buy your own lunch ~ take a packed lunch instead) you could be totally rid of your overdraft within a year and thats not taking into account your £125 mentioned and if you sell some thing at a carboot/ebay. good luck :T

emptypocketz · 13 May 2007 at 9:34AM

Thank you so much for your comments.

I am scared of this being the start of getting into huge debt again (well already in huge debt buts its in a controlled loan which I pay a big chunk off monthly), but if I want to change it then I can only do that.

I have online banking, so when savings go into it, its really easy to transfer them back - might open up a new account (I only have one amount coming into my current account) with a different bank and not apply for their online banking with them - so cannot touch it until I hit the £700.

Will try and be more frugal. I am usually not bad when it comes to not buying things for myself - its the socialising/not letting people down when they ask me to go out, I just cannot say no! But that needs to change.

Will also scoot through my things to put on Ebay! Thank you guys.

beemuzed · 13 May 2007 at 2:02PM

'Fraid I'm always overdrawn at present - another reason for getting debts cleared asap - can't retire with permanent overdraft. Trouble is, it's much less interest than the cc debts, so the incentive is definitely to throw as much at them as I can, despite it being part of the overdraft. One day....

affordmylife · 13 May 2007 at 8:03PM

Well there are a few ideas there for you emptypocketz at least you only have yourself to deal with. This week I have DD1 on school trip £8, DS1 is 17 so present needed £50+ and DS2 is of on football weekend on Friday £130 plus spending money. Step daughter 1 is 18 in June - more expense and step daughter 2 is 16 in July and wants a moped!!! We have booked a family holiday in August but need to find £1000 to pay for it and then its september when we have another 3 birthdays ARGGGGGG you can see why my name is affordmylife. All i want to be able to do is AFFORD MY LIFE!!!!!

emptypocketz · 13 May 2007 at 8:24PM

Gosh! That is a lot of things coming up for you - where do you find all the money? Hope your OH puts money too for all those things.

LookingAhead · 13 May 2007 at 9:00PM

Good luck getting your overdraft down - I know exactly how you feel. (Except mine is nearly double yours! :rolleyes:)

For me, I am making slow progress and it's been by:

* Selling on Amazon & EBAY
* Cutting back massively on socialising/clothes
* Always taking home lunches to work
* Trying to get lifts to & from work so I don't have to find so much weekly bus fare
* Using QuidCo
* Using PigsBack for Boots or John Lewis vouchers
* Making meals from scratch at home which allows for a more frugal grocery shop (very much healthier too as a bonus!)
* Saving coppers & 5p pieces and banking them every few months

You really do have to adopt a feeling off "every penny helps" because, it does really!

affordmylife · 13 May 2007 at 9:01PM

Yes husband is brilliant works six days a week and helps with all chores - couldnt ask for more really. We do it cos we chose to have all these kids so we should pay for what they need/want. I also work but part time otherwise i wouldnt be able to do everything else that needs doing for our bunch. Your overdraft will soon come down just try for £50 odd a month reduction and be proud of your achievements. You must still go out with friends too just not every time they ask perhaps!

matt4504 · 14 May 2007 at 9:03AM

I have a £1250 overdraft which is interest free until August so i'm trying to basically pay everything off by then which basically means I can't go out and spend my money on rubbish anymore, bit depressing sometimes but you gotta do it y'know? When I get paid I basically leave myself an allowance and throw everything else at the debts.

Paying off an overdraft

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free