Money-Stupid Graduate Wants Her Money Back!

lenny_toucan

Firstly, I am rubbish with money. But I have been trying to be good and stick to bugets, only it's a long term thing...

Basically, when I was a student, HSBC couldn't do more for me, in fact they were throwing money my way. Knowing how stupid I am, I declined their offers for extensions on my interest free overdraft (leaving it at the automatic 1 grand). LAter I, I realised that 2nd year was a bit more costly than 1st, and asked for it to be increased up to 1250.

All was well and good until I left uni. I switched from a student account to a graduate, and have my interest free OD until september. Over the summer I managed to crawl out of the overdraft I'd crept in to over the years (just), but this was all put back by silly things like, er, needing a place to live. Rent, Agents' fees and deposits put me right back in the red again.

I'm currently in a rubbish job on rubbish pay and it's been very tricky to stick within what I actually earn - in fact even if I didn't spend a single penny

After getting in to trouble in November, I have tried to stick to a strict weekly budget, which was working well until recently. Yes, I'm a dumbass and judge me all you like... but being so aware of how useless I am with money, I avoid checking my balance. In fact, just seeing that option on the ATM guves me the shakes, even straight after pay-day when I know I have money. Plus, over the many years I have been with HSBC they have always reminded me one way or another that I haven't got any money left (usually just a simple 'declined' on the card machine, or on the one occasion, a phone call). Don't get me wrong, I don't go over all the time, but I am constantly scraping the barrel just before pay day.

So, I was quite suprised when I received a phone call off the bank this evening asking me if I wanted to a) upgrade to the 'plus' account, and b) take out a personal loan because I'd gone over my OD by 400 quid, and they were going to whack another 200 on top of that for the 'trouble'.

Now I'm cross. And Panicky.

Firstly, is it right that they can be so on the ball of the first tenner I overspend for the last 4 years, then suddenly decide NOT to tell me I'm broke until I've whittled it away? If they'd told me sooner I wouldn't be in this mess. (of course there's the argument that I should handle my money better, but in what interest is it to theirs to keep allowing a broke person to keep on spending?!)

And secondly, can I claim any of the charges back? I read the whole article on reclaiming on the main site, but being such a rubbish customer, I am not sure where I stand. When I protested at the charges, the lady on the phone told me they were that high because I had gone over my OD a few times now and was obviously not in a financially secure position. I of course pointed out that that was surely enough reason NOT to charge me so much, because it's only there money that I'm spending here. She told me not to attack her personally because it was not her decision, and being the nice person I am I backed off and apologised for my anger at her company being directed towards her. And she changed the subject.



MY final note is just to say - this is not how I see myself long-term. I am currently applying for jobs in my intended 'career' - my current job is just something to tide me over until I get said 'career'. When I finally get it (bearing in mind I only started applying a week ago), I will be earning nearly 50% more than I am currently. I just need some help getting voer this bump in the road.


So to summarise, I'm just a bit angry (at the bank and myself) for letting me get so much in debt. Is it really fair for them to just let me go in to even more debt, then suddenyl deciding that they want it all back? HELP! I'm just glad I didn't do what my friends did and just let them automatically shift my OD up as a student. I could be another grand in debt right now.

(p.s. I'm on an American laptop and apparently the pound symbol doesn't exist, sorry!)

laura2481

Aaaah, it appears that you were suffering from 'Ostrich Syndrome'. Quite common amongst us DFW's before our LBM's (translation: that's debt free wannabes and light bulb momemnts!) Luckily there is a cure!

Step 1: Read this http://www.moneysavingexpert.com/loans/debt-help-plan

Step 2: Do a statement of affairs (SOA) and post it on here. here's the link http://www.makesenseofcards.com/soacalc.html

Step 3: Wait for a bunch of helpful people to come along and give you advice on saving money, and finding more cash to pay off debts.

Step 4: Starting checking your balance! (I was a swine for never looking at mine because i knew it was a mess. Now I know it is under control I know exactly what's coming in and out and my balance holds no fear!)

I'm sure someone will be along soon to give more specific advice about the overdraft thing- I'm afraid I'm a bit clueless there, credit cards are my problem

I know it all feels a bit 'AAaaargh' in the begining but it can get better.

Good luck

laura2481

ps I once got a call from Barclays saying I had gone £100 over my overdraft and they were charging me £200 and did I know? Obviously I didn't, as I responded by bursting into tears and having to pass the phone on to my BF to sort it out

Banks are rubbish, and blatently looking to squeeze every penny from everyone. :rolleyes:

I think you could probably try claiming the charges back but it will depend on whether you can claim financial difficulty which will depend on your SOA. All other cases are on hold pending a court decision. pop over to the 'Reclaim bank and credit charges' board for more specific advice on this.

Head-Out-Of-Sand

Oooh this all sounds very familiar to me!!! Yep, the sooner you realise banks are not the responsible, caring, our-best-interests-at-heart institutions that we thought they were, the better. They are money-making instruments, nothing more worthy than that. A necessary evil if you want to pay DDs and get your wages paid, nothing more!

The old financial phobia soon dissipates once you get strict with yourself and start checking your balance daily and making sure you know where every penny is going. When I had my LBM I went through 2 years worth of credit card and bank statements that were shoved in drawers and made sure i read every one. As uncomfortable as it was, it made me face up to things and I'm not scared of opening them any more, because I already know what they're going to say. It's really refreshing to not have that sinking feeling when you hear the post hit the doormat.

The best thing to do is post up a statement of affairs (SOA), you can find the form at www.makesenseofcards.com/soacalc people will then be able to give advice on where savings can be made (you might be suprised!)

Use the budget tool on the MSE website, it's really good.

Best advice other than that is to keep coming on here to stay focused and get advice and support, it's really helpful & keeps you on track. Maybe keep this as your MSE diary & commit to posting your progress regularly.

Lastly, don't beat yourself up for your past mistakes - you're obviously ready to face up to things and become financially responsible, which is no small thing at all. Focus on where you go from here and stay positive. Good luck & keep us updated!! :T

Head-Out-Of-Sand

Whoops sorry Laura I've repeated some of what you've said about soa calc - must pay more attention!!:rolleyes:

lenny_toucan

Thanks everyone.

I checked my statements after posting and I don't owe quite so much as I thought. It appears I have only gone over by 200, and then they will whack this extra 200 on top later (lady on the phone said it wouldn't have processed the charges on to my statement yet). So that's some small relief. But I still don't quite see how they can charge me as much as I go over... but clearly that's a question for the reclaims board!

Could someone please verfiy that SOA link - it says incorrect address for me.

Gaah this is all scary stuff! I mean it's gonna be hard penny pinching, but the hardest part I think will be changing, not being the happy go lucky hedonist that I have been for so long! But I hear it's all worth it, so I guess it's worth a shot. HOOS, I'm sure you're right about losing that sinking feeling, so here's to that!

lenny_toucan

Sorry to bump, but could some one tell me how to do an SOA please.

~Beanie~

Try this link: http://www.makesenseofcards.co.uk/soacalc.html

lenny_toucan

thank you!

lenny_toucan

Ok here goes. There's not a lot to it - I don't own a lot, I don't earn a lot and in the grand scheme of things, don't owe a lot. My main issue is that I have a habbit of spending 'til I can't spend no more.


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 5
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 830
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 830

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 380
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................................ 50
Petrol/diesel........................... 35
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 40
Entertainment........................... 90
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 755


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Interest Free OD...............1250......0.........0
Credit Card....................300.......6.........1.79
Total unsecured debts..........1550......6.........-


Monthly Budget Summary
Total monthly income.................... 830
Expenses (including HP & secured debts). 755
Available for debt repayments........... 75
Monthly UNsecured debt repayments....... 6
Amount left after debt repayments....... 69

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,550
Net Assets.............................. -1,550

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

~Beanie~

The main things that jump out at me are:

Clothing -£50. Can you cut this for a while, make do with what you already have?
Haircuts - £40. Per month? That is high!

You also have money aside for petrol but no other vehicle costs?
Are your bills included in the rent?
Can you switch your mobile to PAYG or get a cheaper tariff?