Overdraft

Cerisa

I have very minimal debt compared to everyone else - a £1600 overdraft - but it's getting me down. I was made redundant and had to take a lower paid job out of desperation (i'm literally earning half of what I was).

I have cut corners in many parts of my life but am still struggling, and am not sure what to do next. I have no Tv, no car, i cut and dye my own hair, I buy value brands 80% of the time. Can anyone reccomend anything else?

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 800
Other income............................ 0
Total monthly income.................... 800

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 270
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 60

Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 32 (bus to work)
Medical (prescriptions, dentist etc).... 7.10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 200

Holiday................................. 0
Emergency fund.......................... 0
Purchases eg............................ 50

Total monthly expenses.................. 819

Assets
Cash.................................... 100 in an Isa
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 100

Interest Free Overdraft: £1000

Interest Overdraft: £600


Monthly Budget Summary
Total monthly income.................... 800
Expenses (including secured debts)....... 819
Surplus(deficit if negative)............ -19

amyandjon

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 800
Other income............................ 0
Total monthly income.................... 800

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 270
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120 i budget this for 2 people, go to aldi lidl drop in on family unexpected hehe
Clothing................................ 60 you shouldnt need this for now make do with what you have for 3 months !!

Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 32 (bus to work)
Medical (prescriptions, dentist etc).... 7.10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 0
Entertainment........................... 200 this is crazy whats this on cut it down big time !!! 3 months of non of that you could be 600 quid out of overdraft or more ...

Holiday................................. 0
Emergency fund.......................... 0
Purchases eg............................ 50

Total monthly expenses.................. 819

Assets
Cash.................................... 100 in an Isa take out of isa put in on a overdraft 3 months of 200 700 quid off overdraft...... then clothing fund on hold for 3 months 180 so 880 saved in 3 months 880 off debt 720 remaining then half that on entertainment and you could be overdraft free in a year
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 100

Interest Free Overdraft: £1000

Interest Overdraft: £600


Monthly Budget Summary
Total monthly income.................... 800
Expenses (including secured debts)....... 819
Surplus(deficit if negative)............ -19[/quote]


You can do this keep the chin up

Cerisa

I def agree on entertainment! and clothes I just find it really hard not to buy new outfits.

I'm starting to think online shopping could be a plan as I don't stick to lists. the big advantage Sainsburys has is that I can walk it, but then we do have a farmfoods pretty close as well. Is the quality of their food ok?

Thank you for all the advice, I know it seems like such a stupidly small debt and such petty expenses but i'm just finding it hard to stay motivated!

Kandipandi

Cerisa wrote: »

I have very minimal debt compared to everyone else - a £1600 overdraft - but it's getting me down. I was made redundant and had to take a lower paid job out of desperation (i'm literally earning half of what I was).

I have cut corners in many parts of my life but am still struggling, and am not sure what to do next. I have no Tv, no car, i cut and dye my own hair, I buy value brands 80% of the time. Can anyone reccomend anything else?

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 800
Other income............................ 0( is there any help you can get benefit tax credits etc)
Total monthly income.................... 800

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Rent.................................... 270 (does this include council tax / electric etc?)
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 40 (get rid of it - hand it back if you are in a contract)
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120 (too much for one person look at old style saving board)
Clothing................................ 60 (scrap this until you can afford clothes again - go to charity shops if you are desperate for something)

Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 32 (bus to work)
Medical (prescriptions, dentist etc).... 7.10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40 (scrap this tell folks you are struggling to pay debt off)
Haircuts................................ 0
Entertainment........................... 200 (obscene - thought this might be a mistake? Honestly love if you are really worried about paying debt need to sack this off totally until debts are paid)

Holiday................................. 0
Emergency fund.......................... 0
Purchases eg............................ 50 (what is this for? - can you scrap it)

Total monthly expenses.................. 819 - could be 419 if you cut out as above

Assets
Cash.................................... 100 in an Isa
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 100

Interest Free Overdraft: £1000

Interest Overdraft: £600


Monthly Budget Summary
Total monthly income.................... 800................800
Expenses (including secured debts)....... 819...............419
Surplus(deficit if negative)............ -19[/quote]...............381

You could pay this off in less than 5 months! Thats without making extra money, just by cutting back.

If it is really getting you down get stuck in and cut right back for the meantime until it is paid off. One you start cutting back once it is paid you will find that you are better off and can afford to socialise etc again. p.s. no amount of debt is too small if it is worrying you.
Good Luck x

blackclouds

Hi Cerisa

You know you need to cut down on the entertainment and clothes.

Farmfoods is allright, put it this way if you have to go to Farmfoods / Lidl for 3 months and this weight is off your shoulders is it worth it - damn right it is.

Also re the mobile are you stuck in a contract or could you alter the tarrif or go PAYG ??

Posting up here is the best step you will make, as you now accept it and can deal with it.

Take care BC

CCCS_Sarah

Hi Cerisa,

Are you still with the same bank? If so you may want to consider opening a new bank account, just to make sure any money that you do have coming in is safe.

Once you have opened your new account, you could start making small payments towards your overdraft – as least then the balance will start reducing.

What age are you, if you don’t mind me asking? If you are over 25 you may qualify for working tax credits. This could boost your income. Alternatively you could look into a PT job etc

Sarah

Cerisa

CCS Sarah:I'm 23 and unfortunately if I open another current account (i.e. if my wages aren't going into it) then I'll lose the interest free portion of my overdraft.

BC: Thanks for your help, my mobile is PAYG and has no free texts or anything. We have however switched tarrifs on our landline so i get free landline calls. The only thing I can really do is use it less.

Kandi-pandi: The Entertainment section is £200 cos I was lumping in train fares (as my parents, and some friends, live 3 hours away) but it is probably excessive.
yes my landlady gives me a very good deal everything is included in that rent. I will have a look at the old style board for tips. The extra purchases are things like shower gel, tampons, razor blades etc. Am trying to cut this stuff down by doing things like buying a mooncup.

Kandipandi

You know even just writing this stuff down can help you to see where the money is going. You dont have to go without just cut back as far as you are comfortable with and you can get that debt down. Try to save a little every day and just think twice about what you need to spend. GL hon x

JimmyTheWig

Could you take up a (cheap or free) hobby which means you wouldn't need to go and see friends / family so often?
As has been said, your clothing budget could be drastically reduced. If you've been spending that much over the last months then you must have loads of clothes (that you at least liked the look of in the shops) that you've hardly ever worn.

In fact, why don't you sell some of your clothes on eBay. Then with the money you make you could buy some more from eBay if that's what you wanted to do. make that your challenge - don't spend any money on clothes, just use the money you make from selling.
No need to dye your hair for a while.

Can you get a second job to increase your income? Are you still looking for a main job that might match your previous salary?

Cerisa

Hi Jimmy I have ridiculous amounts of clothes - I buy clothes from ebay/charity shops but...yeah. I have four or five boxes of clothes waiting to be ebayed/given away and that was after a previous declutter. Problem is it's all at my mum's! Tbh I probably won;t be going back that often from now on, I have a do to attend in London (which I may have to beg off) and I have to get the rest of my stuff. After that - well most of my friends and my OH live locally - it's mostly been a matter of tying up loose ends. I have just gotten a second job, one day extra a week in a different department, which will help tide me over. Jimmy...I'm a girl. Hairdye feels pretty essential to me, esp as it can be got cheap.