Paying off an overdraft

TWINKLE

I agree with IIDT - to get out of the spiral of protecting your income from the charges, a new bank account is required for priority bills etc.

imindebttoo

closed wrote: »

Doesn't protect anything from charges being levied, the overdraft will still be there, and still get charges added, just adds another bank account to manage.

Yes and No - this forum is for people to find advice on how to deal with debt, and, well, this is a way to deal with debt - and a way to prevent a situation getting worse by protecting income, priotising expenditure and then offering realistic payments to a debt with anything that's left over.

The new account the OP should open is a basic bank account - so therefore there will be no credit facility to manage on it.

IIDT

TWINKLE

This is true - a basic bank account should be opened and then negotiations can take place with the bank to maybe freeze charges and work out a payment plan. I have had to do this and CCCS advised that this is indeed the best option.

itn

ok just filled out a online application for a Natwest Step account as I have a natwest branch literally down the road from my house. Once this is opened I will get all future salary paid into this account, and get my main DD set up from it.

BeautyandtheBeast_3

hi, if it was me i would open a normal no frills account with Natwest and have my wages paid into that and all my DD coming out of the new account and set up a SO to pay off a set amount per month off the barclays OD. xx

i have got my sepnding on track by using cash only! its real money then not numbers!

itn

its a step account I have opened, can have dd set up on it also, comes with a solo card i think and i can have my wages paid into it.

Tixy

Thats a good step forward itn. As has been mentioned (debated) above the next step is probably to work out a detailed income & expenditure account so that you can work out exactly how much you have to repay your overdraft. This is a good calculator to use http://www.makesenseofcards.com/soacalc.html

Then work through every item on expenditure and look at whether you can save money by switching providers / brands. Then look at whether you are spending on what you need or what you want.

If you are struggling to make your I&E balance then post it on here and we'll see if we can advise you.

gfplux

Hello itn,
When in debt our first re-action is to tackle the problem we have TODAY. In fact the only way to cure your debt is to look at all the problems together.

Debt normally comes by spending MORE than you EARN. That is you are living a lifestyle you can not afford. We all know that, but sometimes we can not see the wood for the trees. If you want to get out of debt you have to change that habit today.


The first step is :-

Make out your SOA and post it here. (link - http://www.makesenseofcards.com/soacalc.html ) This will automatically total the numbers. It can be saved (see the help) and you can change it every day if you want.
When making out your SOA (Statement Of Affairs) try not to guess at the figures, dig out the paperwork! However remember a partial completed one is better than none. It is in fact one of the most IMPORTANT things you will ever do to start on the road to recovery. If you want a lot of help on this forum, posting your SOA is the first and most important step. After it is done it is very easy to keep it up to date. In my opinion everyone should have an up to date SOA even if you have little or no debt. It is a great tool to manage your life with.
If you post it on the forum answer the obvious questions before they are asked so you get immediate feedback, such as :-
If there is “other” Income explain what it is
Mortgage – interest only or not.
What is the age of any children.
Council tax is it over 10 or 12 months.
Electricity and gas any arrears.
Water rates meter yes or no.
Mobiles, how many and when are the contracts up for renewal.
If no contents insurance is it include with buildings insurance.
If pets cost money, what are they.
House or flat value, has it been valued by an Estate Agent and when.
The more that can explain about the financial figures and circumstances the quicker the post will get advise rather than lots of questions.
When you have posted it and it does not look right or you want to change it, do so and repost it.


Good Luck