Getting debt-free whilst overdrawn

bitter-roses

CLAPTON wrote: »

it also tells your bank that you are struggling with controlling your your finances

True enough, but I suspect they already know that since I keep having to increase my overdraft.

CLAPTON wrote: »

If supermarket shopping is a problem then start proper meal planning.. creat a proper shooping list and only buy whats on the list. Lots of meals ideas on the old style board.

I think I’m going to have to try that. Not to mention only doing grocery shopping once a week (I seem to find myself in Tesco most days for no apparent reason, ’cause there’s good food in the house already).

bitter-roses

Honeybee wrote: »

The only features the original bank account had that I didn't have in the basic account is an overdraft facility which I now wouldn't touch with someone else's barge pole, and a cheque book which I wouldn't really find to be of any use now.

Which bank are you with, if you don’t mind me asking? I’m with Lloyds TSB.

Merlinexcalibur

Which would be a start, since I’m not a hundred per cent sure I know what these are.

But surely you have regular bill payments per month which you would know? Utility bills, rental and that sort of thing. Not really all that difficult to find out TBH. Just a suggestion and I am only going on your reply to the particular post above.

pre-cooked stuff, mainly, like roast chicken or pasties

Which can get expensive over time. Especially roast chicken, ready meals and won't do you any good healthwise over time, either. Again, only a suggestion - but one which plenty do daily and have done for quite a while now - is to shop around, look at what you can get eg buy one get one free offers. What kind of fresh meat you can get that won't break your budget. Plenty of other things, too. And it's not a case of 'easier said than done' either as it's very easy to shop around.

One place to start your SOA would be to list your creditors eg 'I owe too many people'. I am afraid the stress isn't going to go away any time soon. I mention that because you need to understand that right now so you know this.

Going back to the basic bank account. In any situation where you are overdrawn it is sensible to do this and get all your financial affairs transferred across ASAP. Your bank can withdraw your overdraft clearly at any time, leaving you with no money. So, I'd be off this coming Monday seeking basic account or, as we have something called Google these days, researching online and opening one that way.

But the main thing here is I am afraid you are going to struggle unless you are able to produce an SOA. May be worth your while approaching someone like Consumer Credit Counselling Services. You obviously have a job so why not contact them and start off from there.

I’m wondering if I should start putting everything on my debit card instead of using cash, and then use internet banking to check when it comes out of my account

Maybe I am missing something here but you are spending money regardless whether it's on your debit card eg where your CASH comes from or withdrawing it. That seems a non-starter to me. Because using your DC clearly won't make a difference as you are obviously taking money from your bank account eg 'cash'.

and then treat the overdrawn account as just another debt?

Erm, yes. Really all anyone could say to that.

But, as a few on this thread have already pointed out you need to start with a financial statement of affairs. Then and only then will you or anyone else here see what you are spending money on eg outgoings.

is looking to be a DMP and I can’t imagine the bank would be too chuffed about that either.

Not sure what you mean by that? Surely, it would be beneficial ie show to the bank your willingness to pay off this debt on a debt management plan. And it's also not up to the bank, either, it's what you can do in your present situation. But you won't know until you try TBH.

Couple of basic bank accounts for you:

Co-Op
Natwest

Very easy to open, can be done today online. Natwest's has every facility a current account does minus cheque book, overdraft facility. But you do get a Solo debit card which plenty of outlets online or otherwise accept. Unlike some basic bank accounts that use the kiddies Electron card which isn't much use for mature people as it's next to worthless eg not everyone accepts it.

Honeybee_2

bitter-roses wrote: »

Which bank are you with, if you don’t mind me asking? I’m with Lloyds TSB.

I was with Lloyds TSB, now I'm with Co-op and have a Cashminder account with an Electron card, which I appear to be able to use everywhere bar the pay at pump machine in Tesco petrol stations.

tenmah

Hi

I transferred my overdraft onto a 0% credit card. I then budget my current account down to the last penny each month. I have done this since Aug last year and have not gone o/d once since then and have been paying off what I can each month on my original overdraft. It was £2600 and currently it is £1300, so I have paid exactly half off - I really feel I have got control of my finances back.

tiff

We have done a budget for ourselves and know how much we can reduce the overdraft by every month. We are still using the account and could transfer the o/d to the Virgin 0% credit card if the bank want repayment immediately. Ours was £2800 in January and is £1600 now.

laura2481

hi bitter-roses, just wanted to say it is possible to sort out your debts and your overdraft at the same time (of course an overdraft is just another type of debt:rolleyes: )
In the past six months I have paid of a £200 overdraft with Barclays, a £250 overdraft with Halifax and started sorting out my CC's:j (obviously bigger overdrafts will take longer to sort out!)

I achieved this by:

1. Doing a SOA
2. Cutting back all unnecessary bills/direct debits etc (eg have gone from contract to PAYG on mobile, getting cheaper insurances)
3. Giving myself a weekly cash allowance eg £15 and that's all I'm allowed. For the first two months I had to leave my cards at home to stop me spending on them!
4. Claimed back some credit card charges
5. Ebayed some stuff.
6. Made shopping lists and meal plans and (mostly) stuck to them!
7. Watching every penny I spent!

Every month I had just a little more left in my overdraft (instead of being right up to the limit!!) until finally this month I managed to not go into my overdraft at all!!:dance: It has been hard work, but I intend to do my damndest to stay out of that overdraft from now on!

Try this site for a good (free!) online spending diary http://www.spendingdiary.com/

Good Luck!

Lemon_Tree

i started by trying to end each month £10 less into my overdraft than i had been the month before. When i survived a month with £50 less then i reduced my overdraft by £50 (the minimum i could reduce with my bank)

bitter-roses

I’m at work just now, so don’t have much time to post anything except this fly-by post.
Done an SOA based on my last three months’ worth of bank statements, and it seems that (although I don’t have the figures immediately to hand) I am spending easily £120 to £150 more per month than I have coming in. (Explains why I need to keep increasing my overdraft, to be sure!)
Next month (April) is gonna be interesting, for certain. I have to get a handle on this ASAP before it gets even worse.

tiff

When youve got time, if you want to post your SOA here we can maybe help you to reduce your outgoings.