please help a dept free wanabe.

lucy._6

hiya people,

me and my boyfriend are wantaing to start a new we both have run up overdrafts and are currently living off them. we have had no end of bank charges. so we have opened a new bank account with no overdraft and having both wagdes paid in to this account and all our comitments taken out of the new account so we can see how much we have left at rhe end of each month. what i really need to no is what we need to do with our current overdrafts how will we be expected to pay this back. any ideas.... we currently have 2560 comming in once weve paid our morgate, bills, min payment on other loans and debt taken our food and fuel off we have around 700 left........please help.

Tixy

Hi Lucy and welcome

Well done for taking the first steps and it sounds like a good move to have opened a new bank account.

With regard to your overdrafts - firstly you might need to look at the terms of the accounts - some accounts state that you must have your salarys paid into that account. If this is the case they may contact you pretty quickly to ask you to repay. If they do write and offer to set up a monthly standing order (based on what you can reasonably afford).

If they don't have this clause then I would still set up a standing order to start repaying them. Chances are at the annual review of your overdrafts they will be either withdrawn or reduced. Again if this happens before they are paid off then write to them to ask if you can continue with your monthly repayments until the debt is cleared.

Good luck

Nargleblast

If you do set up a standing order then make sure it will cover a typical month's charges and a reasonable amount off the capital. The bank probably won't like the fact that your wages are no longer going into the account, but they won't exactly refuse the monthly payments you send them. It is possible though that they may demand the full amount to be settled immediately, and that is when you have to try and negotiate. If you have all your financial details handy, i.e. monthly income and expenditure plus details of all outstanding debts, then you should be able to show you are paying as much as you can afford to within reason.

savingmummy

Well done sounds like your doing well already!!

If you do a SOA we can advise where else to cut back on to have a little extra each month to throw at debt.
http://www.makesenseofcards.com/soacalc.html incluse ALL incomings and outgoings and then hit the MSE button. It gives a detailed chart of your monthly finance and then you can go from there.

Most commonly people overspend on groceries, clothing each month, gas/elec. All small things that make a difference x

lucy._6

thanks for yhe advice guysxx

lucy._6

sorry guys ment thanks for all the advicexx