living in my overdraft

nicnacnoo

Hi all,

Just looked through my bank statements online for the last year, in that time I have been in credit once:eek:and that was by £87.63 which only lasted til the next day!
Also I have gone over my overdraft on 3 separate occasions and the most was by £26.08!:eek:
This time last year my overdraft limit was £1000:o, its now £730:T and going down £40 a month. Also since I started up my bills account I haven’t been over my overdraft which is good, but I must have paid about £1000 in charges because of living in my overdraft!!!:eek:
My debt free date is October 2010, so not long and I absolutely cant wait to see my statements without DR at the end of the amount I have in!!!:A
I remember how I used to feel when my money was running out :mad: and I was creeping towards my overdraft limit, and now, with my separate bills account its so easy to manage:)

Nic :money:

DarkConvict

Good Effort & Keep it up, its worth it!

Oneday77

All it takes is the little things to make a difference.
Well done

planning_ahead_2

Well done - the light at the end your tunnel is definitely shining brighter.

shindig_addict

Hi, well done, you seem really motivated. Can I ask what you mean exactly by your bills account, did you open a separate account just for your bills and what other things have worked for you?
TIA.

Oneday77

Budget accounts are a second account that allows for DD payments.
The theory and pratice is to transfer money on payday straight to your bill account where all your DDs go from. Allow a few days for the payment to clear and then setup your DD dates to be on that future date or slightly after.
That all means that you can't accidentaly overspend your bills and you don't get charges as your bills go out on time. It makes budgeting much easier. I miss mine since I switched away from my bank on my DMP.

nicnacnoo

shindig_addict wrote: »

Hi, well done, you seem really motivated. Can I ask what you mean exactly by your bills account, did you open a separate account just for your bills and what other things have worked for you?
TIA.

Same answer as Oneday 77...lol although said much better than me, i have both my accounts with Lloyds so the transfer goes thru straight away.
Other things i have done is to check my banking everyday, (i do it at least 6 times :rotfl:) if a bill has been higher than expected then i can transfer more money over ready for other bills and means i wont get charged, but means i have to re-budget whats left.

hope that helps, Nic

shindig_addict

Oh thanks for that nic, good idea but I think at the mo I would still o/d on the other a/c (not the dd one) as am having to go over just to buy food. Will try it when I get a bit straighter though.:)

hellnearth

Something that helped me ( advice on here ) was to get a 0% credit card. ( Tesco have a good deal. ) If I was heading towards overdraft, I would get my food etc on the card so as not to pay the OD fees. No spending on the card if not necessary and making the minimum payment.
Things have eased a bit financially, so I'm paying off a bit towards the card and also keeping some money in a savings account ( for the interest ) to pay off the card when the % deal is finished.