Could I have some advice plse?

Twinkles08

Hello,I hope I'm posting in the right place!I was just wondering if I could have some advice about bank account overdrafts.My husband and I have 3 current accounts.He banks with Natwest and has an od limit of £750,I bank with Barclays and have an od limit of £490.We have a joint acc with A & L with a limit of £350.All of our income and outgoings run through these accounts and we have maxed out all of the limits every month.We have other debt which we're dealing with,with the help of cab.We are on a low income,so every penny counts.Up until recently we haven't really thought about the overdrafts as a problem.Although we knew that they were also debt we haven't really factored them in at all.But I have read several times about overdrafts suddenly been taken away by banks and I realised that if they did that to us we would be utterly screwed (parden the language).So my question is,would it be a good idea to open up new accounts with no overdrfts (for income and outgoings) and then start to chip away at the o/ds or stay as we are but pay £10 a month to each then ring up each month and lower the limits?Not sure if it's a risk or not.Thanks in advance-hope I've made sense!;)Emma

Twinkles08

Me again,I just realised that the £10 I was talking of paying would prob be sucked up in interest charges etc so I guess it would have to be a slightly higher amount to make a dent each month?I believe our credit rating is too poor and we are too stretched to get new credit so if we were to apply for new accounts they would have to be no frills current accounts-but i guess that's better!Ie no overdraft facility etc.When you apply for switch cards and similar,I presume you can ask to not have an od?Any advice at all would be v welcome

sparky0107

Hiya Emma,
Welcome to DFW, can you put your SOA up for us, so we can offer you some advice www.makesenseofcards.com/soacalc.htm
and format it for MSE, you will need all your outgoings, credit card balances APR's and minimum payments. Some clever people will come along and give you some excellent help. Also try the snowball calculator www.whatsthecost.com and also try keeping a spending diary, so you can see where any spare cash is going www.spendingdiary.com

HTH Good Luck

Twinkles08

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 859.9
Benefits................................ 650.08
Other income............................ 0
Total monthly income.................... 1509.98

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 575
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 60
Gas..................................... 0
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 60
Mobile phone............................ 15
TV Licence.............................. 12.01
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 40
Petrol/diesel........................... 84
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................. 9.22
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1325.23


Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 1000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 169......(1)........0
Total secured & HP debts...... 169.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax loan ..................3220.73...2.........0
Halifax credit card ...........494.47....1.3.......0
Halifax overdraft acc..........263.98....1.........0
Southwest water................299.25....1.........0
Littlewoods....................391.19....1.........0
Fitlife (gym)..................114.......1.........0
Natwest credit card............442.96....1.........0
Barclaycard....................450.02....2.........0
Total unsecured debts..........5676.6....10.3......-


Monthly Budget Summary
Total monthly income.................... 1,509.98
Expenses (including HP & secured debts). 1,325.23
Available for debt repayments........... 184.75
Monthly UNsecured debt repayments....... 10.3
Amount left after debt repayments....... 174.45

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -169
Total Unsecured debt.................... -5,676.6
Net Assets.............................. -4,676.6

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.
I hope I did this right!This is a statement of both mine and my husbands finances combined,can I just point out the entertainment is for my husbands smoking habit (approx £38 a month).I put his driving lessons (£84) as petrol as didn't know where as to put it!Also all debts are frozen as cab are currently helping us with our creditors,althou they've tweaked the numbers I've done my best to give a true account.I've just finished paying off housing benefits arrears and electricity arrears this month,so we have a bit more money to play with.The landline cost also includes the broadband and phone package althou I switched to a cheaper tariff so hopefully nxt bill will be cheaper!

Twinkles08

Ps-The £1000.00 we have as cash is for moving in Spring.It cost a bomb to move but we're hoping to move somewhere quieter and cheaper.

debrag

Twinkles08 wrote: »

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 859.9
Benefits................................ 650.08
Other income............................ 0
Total monthly income.................... 1509.98

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 575
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 60
Gas..................................... 0
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 60 - do you phone abroad, get the cheapest available
Mobile phone............................ 15
TV Licence.............................. 12.01
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200 - this can be cut down to 150 ish
Clothing................................ 40 - stop this for a few months
Petrol/diesel........................... 84
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................. 9.22
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 15
Entertainment........................... 60
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1325.23


Assets
Cash.................................... 1000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 1000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 169......(0)........0
Total secured & HP debts...... 169.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Halifax loan ..................3220.73...2.........0
Halifax credit card ...........494.47....1.3.......0
Halifax overdraft acc..........263.98....1.........0
Southwest water................299.25....1.........0
Littlewoods....................391.19....1.........0
Fitlife (gym)..................114.......1.........0
Natwest credit card............442.96....1.........0
Barclaycard....................450.02....2.........0
Total unsecured debts..........5676.6....10.3......-


Monthly Budget Summary
Total monthly income.................... 1,509.98
Expenses (including HP & secured debts). 1,325.23
Available for debt repayments........... 184.75
Monthly UNsecured debt repayments....... 10.3
Amount left after debt repayments....... 174.45

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -169
Total Unsecured debt.................... -5,676.6
Net Assets.............................. -4,676.6

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.
I hope I did this right!This is a statement of both mine and my husbands finances combined,can I just point out the entertainment is for my smoking habit (approx £38 a month).I put his driving lessons (£84) as petrol as didn't know where as to put it!Also all debts are frozen as cab are currently helping us with our creditors,althou they've tweaked the numbers I've done my best to give a true account.I've just finished paying off housing benefits arrears and electricity arrears this month,so we have a bit more money to play with.The landline cost also includes the broadband and phone package althou I switched to a cheaper tariff so hopefully nxt bill will be cheaper!

cut down on cigs and stop driving lessons for a few months will help.
I pay 1/3 of you phone bill for tv/broadband/phone

angeldiva

Im just going to answer to the question you posted.

would it be a good idea to open up new accounts with no overdrfts (for income and outgoings) and then start to chip away at the o/ds

YES!!! I feel thats the only way you are going to get rid of them, Im with co-op who do a great basic account.

Then you wont be messed up if they suddenly reduce them or take them away!

Twinkles08

Hi debrag,do you mind me asking who your with?We're with virgin (no phone calls abroad)but hubby insists on xlrge internet package-he won't budge!He's meant to be taking his driving test nxt month so fingers crossed.So expensive!I have started to use food leftovers in a bid to cut groceries down and it seems to be working bit by bit.We were spending £60 a week before x-mas which I felt was excessive

Twinkles08

Hi angeldiva!If I get my money paid into a new account will my old bank start going nuts cos there's no money running through anymore or do you think they will be pacified if I lower the od limit each month and try to pay back?Presume I have to use a different bank as if I open a new acc in the same branch I imagine they could transgfer funds to pay off debt??Not sure on this one

theoretica

If you get new accounts I think your banks might, as you suspect, be unhappy- I think they are most likely to be happy if you caom out of the overdraft for some time each month but am not sure as the minds of banks is very mysterious. Also you would be paying interest charges for the whole month, not just the bit at the end. Would it be sensible to open a no frills account with someone else and have it sitting there with £10 in it so it is ready just in case, but not use that one?

I hope your husband realises how expensive it is to run a car, especially with insurance for someone who has just passed his test!

RAS

hi

you need to read the terms and conditons of your bank accounts and see what you are paying in interest (APR) for them. Some require a minimum incoming amount each month. On the other hand at least one OP (angeladavis?) had several ODs and paid her income into one, transferred it to another and another and another so the same money serviced several ODs.