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  • FIRST POST
    • LizLou
    • By LizLou 3rd Oct 17, 8:30 PM
    • 1Posts
    • 0Thanks
    LizLou
    Advice needed please!
    • #1
    • 3rd Oct 17, 8:30 PM
    Advice needed please! 3rd Oct 17 at 8:30 PM
    Hi,
    I'm trying to become debt free. Currently I have a £2,600 overdraft, the charges are becoming unmanageable. I also have a £3,500 personal loan. Both of these are with my Halifax account.
    I consulted the step change website and the advice was to get a basic bank account and get my wages etc paid into that whilst I concentrate on paying my debts.
    Is that the correct way to do things?
Page 1
    • DebtFreeDuo
    • By DebtFreeDuo 4th Oct 17, 2:35 PM
    • 633 Posts
    • 3,085 Thanks
    DebtFreeDuo
    • #2
    • 4th Oct 17, 2:35 PM
    • #2
    • 4th Oct 17, 2:35 PM
    You have come to the right place, if I were in your position I would start with an SOA, this will help you find where you can cut things out. Lots of people post these on their diary and get advise from lots of experienced people here. I can't comment on whether or not that's the right thing to do but its an idea worth thinking about. I'm sure someone with more experience than me will be along to help soon.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • EssexHebridean
    • By EssexHebridean 4th Oct 17, 3:07 PM
    • 8,236 Posts
    • 43,663 Thanks
    EssexHebridean
    • #3
    • 4th Oct 17, 3:07 PM
    • #3
    • 4th Oct 17, 3:07 PM
    Great advice from Stepchange there - the basic bank account should be with a financial provider who you do not have debt with - be careful about financial institutions that are linked to others on that, too. The idea of the basic account is it will not have an overdraft facility so means you can't spend more than is in there. If your credit history is poor it will also be an account it is possible for you to get.

    DFD is right about putting together an SOA as well - you'll find the link within the "sticky" thread at the top of the board - use the Stoozing.com one that we recommend as that is back working again now. Fil it in honestly and accurately - you'll need at least 3, and ideally 12 months of bank statements so that you can make sure that you don't miss anything, but the categories are pretty good and should help you spot anything you might miss. Format for MSE and post into this thread and we'll take a look and see where you might be able to make savings.

    The first thing for you to do will be to sort out a budget that works for you, and that you can then stick to. And the key thing to tackle will be the overdraft as these can be called in by the provider at any time which makes them a rather dangerous form of debt.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£702.45 (20/11/17)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
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