Overdraft issue

owlhead

Hi, can somebody give me some advice please? I have no clue how overdrafts work apart from that I have one for £2000 and when I use this up, when my account is credited, the overdraft eats it up. My account has just been credited and so I've paid off the £2000 I owed, but no doubt will go back into before too long. The problem is I can't get out of this cycle of using up and then paying it back in one whack but would rather use up the overdraft and then pay it back gradually, so it's not such a shock.

Today, somebody told me I could open a bank account with a different provider, then transfer my money into that as well as use the overdraft up again, then close my account with the bank I've got the overdraft with and arrange to pay them back monthly? Is this possible and what exactly should I do to sort it out that way? Thanks.

noh

Spend £167 pounds a month less than your income.
In 12 months time your overdraft will be gone.

amus

It is possible to do this, but is at the banks discretion and is more commonly used for those in financial hardship. You would have to ask to see an advisor at your bank and they will tell you whether you are able to do this.

Fiddlestick

noh wrote: »

Spend £167 pounds a month less than your income.
In 12 months time your overdraft will be gone.

This, pretty much.

Spend less than you earn each month and the overdraft with decrease, so long as the excess amount covers the interest.

Lokolo

Do this:
http://www.makesenseofcards.com/soacalc.html

Post it here in MSE format.

We can tell you where to cut down to get out of your overdraft.