Halifax have put me in an awkward position

mac2009

Dan0956 wrote: »

mac2009, You dont think my plan of action to save £40 a month is a good idea?

Sorry, I didn't mean to sound too harsh - I think there is nothing wrong in principle with organising accounts to save money. BUT - you're proposing to save £40 a month by borrowing an additional £500 (even if it is from a family member) and maxing out one account. If you go slightly over the £2500 limit on one account, you'll be worse off. If you spend on the zero'd account, you'll be back to square 1 too. I think you'd be better off minimising the risk, not the charges at present and saving the money through budgeting or extra income.

Just my opinion tho...

ses6jwg

You are seriously in debt, take your head out of the sand.

scottishblondie

Well it's not the worst plan, but as others have pointed out you do need to be very careful not to slip into old habits and end up back in trouble. And perhaps borrowing from your Mum isn't the best plan either - I know from experience how easy it is to let debts to family drag on. On the upside at least if you're not paying £30 in OD charges a month you can put that towards paying off your debt.

Also, on a side point, I'm just curious how you can spare £500 from next month's wages? I got the impression from this thread that you were more or less using all of your income to keep above water?

VanCrack

Or, you could take the 1,800 you are foolishly being offered to further entrench in you in debt and put it on a horse. Obe Gold in the 3.15 at Southwell looks a good thing today.
Yes yes, i know, a preposterous idea for reducing debt. Not as preposterous as borrowing from the source of your debt in order to reduce the debt you owe to the source of your debt.

Dan0956

I dont think ive made my point clear and have received negativaty for my plan.....

At the moment i have 2 halifax accounts which have 2000 overdraft limits (i have a few hundred left on each one.

Halifax are letting me increase the limit to 2500 on each one (with NO Extra charge) so i can go to 2500 overdrawn and use that 500 aswell as 1000 i have in a savings and 500 more (either gift from mum or wait for next few months wages) to pay off one of the 2000 debt. so instead of having 3 accounts of.....

1) -2000
2) -2000
3) +1500
(which is -2500 overdrawn paying £60 a month charges and earing £3 a month interest)

I`ll be

1) -2500
2) 0
3) 0

(which is -2500 overdrawn paying £30 a month charges and earing £0 a month interest)

I DONT UNDERSTAND WHY IM GETTING SUCH A HARD TIME?
which
0

Paul_Herring

I DONT UNDERSTAND WHY IM GETTING SUCH A HARD TIME?

Because
1) you were initially indicating that you wanted to use the extra overdraft to increase your savings
2) Your plan above still puts you in a precarious position whereby you'd be worse off because you're leaving yourself no leeway:

1) -2500
2) 0
3) 0

Your limit on (1) is 2500. If you go a quid over that you'll be paying (IIRC) a fiver per day, not 2 quid per day.

If you can get your net debt down to 2,000, then that 500 quid buffer is probably enough to do what you want, but as it stands you're likely to be better off as is.

Dan0956

Yes initially i got it wrong, but on post 7 of this topic i posted what i believed to be a better option.

Maybe again ive not been clear, the 2000 overdraft limit i currently have on each account is NOT being used to the max. Sure by the end of the month im probably -1900 on each one, I still always have that odd £100-£200 for emergency. Ive never once gone UPTO the limit nor have i ever gone OVER it in the years ive had it!!

I must be missing something here, because it seems a no brainer to me, i must be seriously missing something

Paul_Herring

Sure by the end of the month im probably -1900 on each one, I still always have that odd £100-£200 for emergency.[...]Ive never once gone UPTO the limit nor have i ever gone OVER it in the years ive had it!!

If that's the case, go for it, and then concentrate on getting the resultant 2,300 balance paid off asap.

dtaylor84

Dan0956 wrote: »

Yes initially i got it wrong, but on post 7 of this topic i posted what i believed to be a better option.

Maybe again ive not been clear, the 2000 overdraft limit i currently have on each account is NOT being used to the max. Sure by the end of the month im probably -1900 on each one, I still always have that odd £100-£200 for emergency. Ive never once gone UPTO the limit nor have i ever gone OVER it in the years ive had it!!

I must be missing something here, because it seems a no brainer to me, i must be seriously missing something

Mathematically, yes, it is a no brainer and will minimise your charges if you stick to it. But it won't reduce your overall level of debt.

You are getting a hard time as the people here (sensibly in my opinion) think you would be better off concentrating on a plan to sustainably reduce your level of debt to a manageable level in addition to minimising the charges incurred from your overdrafts. Your plan carries a high risk of leading to more debt and even higher charges by making it easy to live even further beyond your means.

peachyprice

Dan0956 wrote: »

so im 6300 overdrawn and pretty much down to the wire each month.

Dan0956 wrote: »

the 2000 overdraft limit i currently have on each account is NOT being used to the max.

So which is it