Most effective way to clear an overdraft?

sazc_2

I know the most obvious answer is to cancel this altogether however if I do this when my wages go in I will be £450 short and in alot of trouble. I've already managed to reduce it by £100 but keep finding myself spending it. It was put on for an emergency however I began to like the fact I had more than my wages to spend.....how naive. I no longer want this service anymore and would prefer to go back to the days when I was in control and had nothing at all. Whats the most effective way of completley diminising this? I currently bank with HSBC.

YorkshireBoy

sazc wrote: »

I know the most obvious answer is to cancel this altogether

Wrong!

Whats the most effective way of completley diminising this?

In a word, willpower.

Other options:
Earn more and/or spend less.

Last resort:
Use a savings account to receive your income and move to 100% cash transactions. Inconvenient...yes, but that's the price you pay for having no willpower.

sazc_2

I do have willpower I realised that my credit card was a bad idea cut this up and now owe only £16 which will be fully paid this month. Then I have a car loan tht will finish in Dec meaning I will have more income. I've tried to boost my income but overtime/bonuses at work aren't currently on offer due to the current climate. If I didn't have the overdraft i'd have roughly £280 a month left over but when my wages go in the vultures of HSBC take back my overdraft

ShelfStacker_3

A personal loan. No willpower really necessary, overdraft and CC cleared - just remember to remove/close both when you've got the loan!

ixwood

You need to spend less until it's gone. Aim to reduce it by £100 a month or whatever is manageable.

Living below your means is the only way to fix living above them.

opinions4u

sazc wrote: »

I do have willpower I realised that my credit card was a bad idea cut this up and now owe only £16 which will be fully paid this month.
Moving in the right direction.

Then I have a car loan tht will finish in Dec meaning I will have more income.
A great opportunity to be overdraft free within a handful of months.

I've tried to boost my income but overtime/bonuses at work aren't currently on offer due to the current climate.
Just make sure they know you're willing if the opportunity does arise.

If I didn't have the overdraft i'd have roughly £280 a month left over but when my wages go in the vultures of HSBC take back my overdraft
You chose to borrow the money. So weren't you the vulture first? Swooping in on the poor ikkle bank's cash?

It's a relatively small amount. Use the car loan money to be debt free by Easter (assuming the numbers add up).

sazc_2

I don't think a loan is the answer to my problem as thats just prolonging my debts and with the current climate I don't think they'll be handing them out. I have an appointment on Friday to discuss my options. I'm hoping they'll allow me to cancel the overdraft and pay it back in manageable amounts however i'm not sure if this is an option. Failing that i'm condiering switching everything to my savings account as it appears i can still pay DDs and SOMs from this account and try to deal with the overdraft as a debt and pay back monthly. If anyone else has done this or knows anyone who has done this i'd appreciate any info as to me its a logical answer.

DCFC79

You need to work out where your spending the money, is it food for your lunch ?, is it the weekly shop ?, do you buy clothes each week ?, create a spreadsheet of you outgoings and list you in comings, then look at it and see where you can cut back, or post a SOA on the debt free wannabee board and others will reply with ideas where you can cut back

chambta

sazc wrote: »

I don't think a loan is the answer to my problem as thats just prolonging my debts and with the current climate I don't think they'll be handing them out. I have an appointment on Friday to discuss my options. I'm hoping they'll allow me to cancel the overdraft and pay it back in manageable amounts however i'm not sure if this is an option. Failing that i'm condiering switching everything to my savings account as it appears i can still pay DDs and SOMs from this account and try to deal with the overdraft as a debt and pay back monthly. If anyone else has done this or knows anyone who has done this i'd appreciate any info as to me its a logical answer.

Cancelling the overdraft and paying it back in manageable chunks would be a loan though.

If you're finding it difficult to repay through leaving sufficient funds how would any other option work? My suggestion would be to transfer a certain amount once you've been paid to a totally separate account and allow that balance to grow until you have enough to pay the o/d off in one go.

anniecave

chambta wrote: »

Cancelling the overdraft and paying it back in manageable chunks would be a loan though.

If you're finding it difficult to repay through leaving sufficient funds how would any other option work? My suggestion would be to transfer a certain amount once you've been paid to a totally separate account and allow that balance to grow until you have enough to pay the o/d off in one go.

Not sure I follow that logic ... interest on an overdraft will be a lot more than interest in another account..

I'd just work in paying it off as quickly as possible...

BingoPacman

I found my overdraft going up each month! But the harder thing was trying to get someone to reduce it for me! Had to ask them to stop increasing it.