Whats the best way to go about paying off my overdraft?

Burp_2

Hi

I have a graduate account with an overdraft facility of £2000 which I am currently in by £1500.

Each month my wage goes in (£1341.45 after tax) and the following comes out:

£800 - goes into our joint account to pay for mortgage/bills/insurance/food etc
£10 - contact lenses
£15 - mobile phone
£90 - car insurance (I know this sounds a lot but 2 cars!)
£34 - parking
£100 - petrol

which in theory should leave me with around £300 extra each month for helping to clear my overdraft (minus a little bit for going out etc i suppose!) But i don't seem to getting out of my overdraft at all ... just ending up back in it the same amount each month.

I relaise this is due to spending on luxuries and treats etc! So I aim to kerb that.

Basically my question is ... would it be best for me to open a new account where all the above can happen (minus the overdraft) and then whatever I have left over each month pay off the overdraft of my old account so that I can see it depleating ... or just keep my current account running as it is and hope what I have left over each month starts to clear the overdraft without me actually seeing it happen as such? If that makes sense!?

cheers
Burp

Barny1979

If your overdraft is with HSBC you can reduce it online yourself, which I found helpful, reduced it each month by £50 and it's gone now

Burp_2

Unfortunately its not! It's with Natwest - thats ashame as that sounds good!



Burp

Pippilongstocking

i paid £50 into an online savings account [by direct debit on day paid] (didnt notice it going) and then paid off one overdraft after about 6 months - might be worth a try - its like a dd to yourself............x

Burp_2

fayjmck wrote: »

i paid £50 into an online savings account [by direct debit on day paid] (didnt notice it going) and then paid off one overdraft after about 6 months - might be worth a try - its like a dd to yourself............x

Sounds like a plan

Just hope it doesn't take me further into my overdraft! Altho it shouldn't if I stick to my guns and dont spend money on treats and luxuries!?

cheers Burp

rayday2

You could contact your bank and ask them to reduce it each month by a certain amount any bank should do this for you.

get_me_debt_free

Barny1979 wrote: »

If your overdraft is with HSBC you can reduce it online yourself, which I found helpful, reduced it each month by £50 and it's gone now

Sorry I dont understand how you can do this if you are currently in your overdraft?

LilacPixie

RBS will reduce the overdraft limit monthly if you ask them too so I can't see why natwest would differ.

Barny1979

get_me_debt_free wrote: »

Sorry I dont understand how you can do this if you are currently in your overdraft?

Well the op theoretically has £300 spare a month, so if he reduces his overdraft it should force him to not waste the spare money each month until his overdraft is clear.

Burp_2

Barny1979 wrote: »

Well the op theoretically has £300 spare a month, so if he reduces his overdraft it should force him to not waste the spare money each month until his overdraft is clear.

her

lol ... not a very feminine user name I know!

Thanks for all your advice guys ... ideally I'd like to keep the overdraft facility there for 'end of the world situations' ... so I think what I may do is put so much money away each month and then pay the overdraft off in one lump sum

Burp x

Pippilongstocking

think this is a good plan as I am a coward, I like the security of it being there - and my £50 quid was just another 'dd' so it came off without me knowing really, with my other ones, I just thought of it as another expense and then didn't miss it xx