living on overdraft

misshopson

hi guys,

need advice please. Ever since christmas i have been stuck and seems like am living on my overdraft money. Although I stick to my means and payb bills every month I have never quite come off the overdraft. It sucks when i recieve my bank statement and view that all of my balances are based on Dr none are Cr.. I have a £2500 overdratf. How do I get out of this? How else could I toughen myself up into NOT using unnecessery money and rather save to pay off overdraft? would you think its safer to save money into another account untill i reach my pay off target? I dont want another loan. I got myself into this mess now I want to learn the hard core way.. any ideas guys! Hubby cant help, hes just as bad as me x

we earn well but have nothing to show for it in fact at the moment i have £9 and thats from overdraft money which means my balance is showing £2491. how bad is that?:(

Geebee

Hi Misshopson... maybe the first step would be to fill out an SOA to see exactly where your money is going and if you can cut back in any way. Post it up and someone will be able to give you advice as to any savings that can be made. Use the link below.
http://www.makesenseofcards.com/soacalc.html

Good luck!

GB

Fitzer2000

Hi MissHopson, I was in a similar situation as a student and the best advice I can give you is to reduce your overdraft by say £50 per month ( not a great sacrifice and your bank should support you with this). try and use cash as much as possible, it really does make a difference and you should find you spend less.

Tixy

Hi

Also another option which suits some people is to open a new account with another bank (with no overdraft) and move your current banking over there (income/dds etc). Then work out what you can afford monthly and set up a standing order from new account to overdraft to start paying down the debt.

misshopson

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1220
Partners monthly income after tax....... 1200
Benefits................................ 1000
Other income............................ 0
Total monthly income.................... 3420
Monthly Expense Details
Mortgage................................ 542
Secured/HP loan repayments.............. 300
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 35
Mobile phone............................ 60
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 12
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 160
Road tax................................ 12 (worked out at monthly basis)
Car Insurance........................... 250
Car maintenance (including MOT)......... 10 (also worked out on monthly basisc as we only renew yearly)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 600 (my youngest goes to nursery full time and my eldest ar school club)
Other child related expenses............ 30 (saving account 15 pounds each goes to their savings account)
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 9
Buildings insurance..................... 0
Contents insurance...................... 32 (we have building and contents insurance wasnt sure what the amount for each was)
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100 (our families are huge)
Haircuts................................ 40 (myself and have 2 daughters)
Entertainment........................... 200
Holiday................................. 0
Emergency fund.......................... 0 (unfortunately nothing saved up)
Total monthly expenses.................. 2884

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 102000...(542)......5
Secured Debt.................. 15000....(300)......0
Total secured & HP debts...... 117000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
lloyds credit card.............1500......50........0
capital one x 2................300.......20........0
overdraft......................2500......50........0
car finance ...................7000......241.......0
lloyds tsb loan................8000......250.......0
Total unsecured debts..........19300.....611.......-

Monthly Budget Summary
Total monthly income.................... 3,420
Expenses (including HP & secured debts). 2,884
Available for debt repayments........... 536
Monthly UNsecured debt repayments....... 611
Amount short for making debt repayments. -75
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -117,000
Total Unsecured debt.................... -19,300
Net Assets.............................. -136,300
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

am not sure what the last few bits mean to me. does that mean available to pay off secured loan and unsecured lona are wat i have balance on a monthly basis? looking at this i dont feel as am doing anything extrodinary but why cant i save or get out of the overdraft hole? i somewhat believe that if i were out of the overdraft id be obssessed with keeping up with remaining on the credit side.. how to decipline myself?

your help is appreciated..

misshopson

hi tixy

would that mean id have to ring alot of companies with new bank details etc? would i need a good credit history to be able to open an account? thanks guys again x

Tixy

Hi

You can get a basic bank account without a good credit history. All banks do some form of basic account but don't advertise them - http://www.moneymadeclear.org.uk/pdfs/bank_accounts.pdf (info and a list on page 5 of that link)

As to changing your DDs over some banks offer a service where they will deal with this for you, not sure if they all do.

Tixy

misshopson wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1220
Partners monthly income after tax....... 1200
Benefits................................ 1000 this looks high, is this the monthly amount?
Other income............................ 0
Total monthly income.................... 3420
Monthly Expense Details
Mortgage................................ 542
Secured/HP loan repayments.............. 300
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 98
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 35
Mobile phone............................ 60 can either of you reduce to a cheaper tariff at all (even a £5 saving helps)
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 12
Groceries etc. ......................... 200
Clothing................................ 50 keep as low as you canfor now (especially for the adults)
Petrol/diesel........................... 160
Road tax................................ 12 (worked out at monthly basis)
Car Insurance........................... 250 Is this right? £250 a month? why so high?
Car maintenance (including MOT)......... 10 (also worked out on monthly basisc as we only renew yearly) is this enough for MOTs, service and tyres, parts etc?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 600 (my youngest goes to nursery full time and my eldest ar school club) how soon does your little one go up to school? as this will obviously save a big chunk
Other child related expenses............ 30 (saving account 15 pounds each goes to their savings account)
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 9
Buildings insurance..................... 0
Contents insurance...................... 32 (we have building and contents insurance wasnt sure what the amount for each was)
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100 (our families are huge) try to reduce a little what you spend on everyone. Or maybe try signing up to do online reviews/surveys to earn vouchers to put towards this cost.
Haircuts................................ 40 (myself and have 2 daughters) could you go a week longer between cuts? or try a hairdressing college for much cheaper cuts?
Entertainment........................... 200 reduce this for now (halve?)
Holiday................................. 0
Emergency fund.......................... 0 (unfortunately nothing saved up)
Total monthly expenses.................. 2884

Assets
Cash.................................... 0
House value (Gross)..................... 0how much is house worth
Shares and bonds........................ 0
Car(s).................................. 0 do you need both cars?
Other assets............................ 0
Total Assets............................ 0

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 102000...(542)......5
Secured Debt.................. 15000....(300)......0
Total secured & HP debts...... 117000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
lloyds credit card.............1500......50........0
capital one x 2................300.......20........0
overdraft......................2500......50........0
car finance ...................7000......241.......0
lloyds tsb loan................8000......250.......0
Total unsecured debts..........19300.....611.......-

Monthly Budget Summary
Total monthly income.................... 3,420
Expenses (including HP & secured debts). 2,884
Available for debt repayments........... 536
Monthly UNsecured debt repayments....... 611
Amount short for making debt repayments. -75 this means that you are £75 short of meeting your repayments each month, which means you would be getting further into debt each month, you need to make some cutbacks to at least remove the £75 shortfall.

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -117,000
Total Unsecured debt.................... -19,300
Net Assets.............................. -136,300
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

am not sure what the last few bits mean to me. does that mean available to pay off secured loan and unsecured lona are wat i have balance on a monthly basis? looking at this i dont feel as am doing anything extrodinary but why cant i save or get out of the overdraft hole? i somewhat believe that if i were out of the overdraft id be obssessed with keeping up with remaining on the credit side.. how to decipline myself?

your help is appreciated..

You need to cut back by at least £75 per month, obvious areas are entertainment and presents. If your car insurance is correct you need to shop around to reduce this or to consider whether you need both cars or could get a car in a much lower insurance group.

Hope some of my suggestions help.

randomer

We have opened an account with RBS and intend to leave O/D in another account.

RBS have backtracked on whether or not they will shift all the S/O so that means extra work for me.:eek:

misshopson

hi thanks and i will consider everything you said but its draining am not sure how to solve my issues wish i had a magic wand to make everything better. its so draining and feeling so low and having crazy thoughts. i am only 24 but hate myself for getting myself in to this mess in the first place. i dont want sympathy i just wanted to get things off my chest. ill look into weekend work temp to help me get by. i have so much debt i dont even know where to start.

randomer

Can you do without cars?