Overdraft catchup

fstillgoe

Help! We currently have an overdraft of £2500 and we can't seem to catch up. Our wages go in of £2262 and our outgoings are 2149.91, this does not include general socialising (which is very minimal), takeaways, car maintenace etc and handouts to our children both teenagers which also are very minimal. We have a credit card with 1289 outstanding as well. We just can't seem to catch up and our overdraft is getting larger and larger. My husband since losing his dad last year just does not seem bothered and whilst I know this is not a large amount of money I know that it will just keep going up and up. We both work full time.

JamieT1977

First thing to do is see if you can cut your outgoings. Obviously you have things that you have to spend money on i.e food, utilities etc. Other things can be cut like you know nights out etc like yoy mention.
Any debt assistance agencies will help set out these figures, as there is always ways to cut outgoings i.e save 30 odd pence a day on a newspaper by reading them online for free. switching to PAYG mobile if your usage suits that better.Do your wages get paid into the sme bank as your overdraft?

vaporate

Take what I say as a pinch of salt but...

The best way I have found is to reduce your overdraft limit by a set amount each month so that you can't use it. You will just have to get by with what you have, if you are that keen.

Unless you can increase your income by some form of magical spell.

fstillgoe

Thanks Jamie. Yes our wages do go into the same bank account that we have the overdraft with.

JamieT1977

it may be worth opening an account with a new bank, as legally your current bank can take money to pay off your overdraft.
Be careful who you choose, as in if your overdraft is with Abbey/Santander then avoid any others under the same Santander umbrella...A&L, Bradford and Bingley etc.
Also (unless done already) unsure that any interest is frozen on your overdraft, so that it does not increase. Pay off what you can in instalments.
In short do not worry your bank will want to work with you (even if their letters do not seem so) they would rather you paid it off in bits, rather than you not pay anything.

fstillgoe

Thanks, I've been thinking of switching to a different bank, alliance and leicester have a 0% on overdrafts and no monthly fee as at the moment I am paying £15 a month monthly fee for our account and £26 a month on our overdraft. Just a bit scared of doing that have been with our current account providers since leaving school which is now a distant dream! Also although the first year is 0% it will go up.

JamieT1977

I felt the same about leaving Barclays,was with them for 20 or so years, but I am now with Natwest.
Sure this site will have it somewhere, or if not google search bank accounts that suit people with money problems (I got a list via payplan) - thats what led me to Natwest

shindig_addict

Hiya, well done for dealing with this now because as you say, it just snowballs before you know it.
Couple of thoughts here, would you be able to get a loan from your bank to consolidate the o/d and any other credit agreements you may be paying; credit cards, catalogues,etc. This can work out cheaper than all the individual payments.
Are you claiming working tax credits; you can earn high amounts and still get these.
Have you got any items that you could sell on ebay or at a car boot sale. Just thought with having teenagers you might have . Any branded goods sell well or fashion brands, Topshop, Oasis and such. (Although ebay is very slow at the moment, but sure it will pick up again.)
If I think of anything else I'll pop back.

JamieT1977

Ebay is a good sourse of making money, since mid December I have made £500+. Like the above suggestion, see if you can have a clear out. Maybe your children can sell stuff (they get the money from their things being sold, so no need for handouts from you for that period.
As well as teaching them the skills of making money to have money it would leave you with a bit more towards your debts.

fstillgoe

Sounds like some good ideas there. I will definately be looking into those.

JamieT1977

Good luck