Drowning in my overdraft!

Croc_Mad

Hi all, I am after some help.

After being made redundant from my job in Nov 2008, I have taken a new job, with a far lower salary. My income has dropped from approximately £25,000 to £13,600 this has meant being careful with my spending and adjusting my budget accordingly.

I've gone through the usual 'big changes' cancelling my gym membership, reducing the tv and broadband packages and reducing the shopping budget drastically using advice we found on here. I have also made a budget plan to try and track exactly where my high cost items are so I can identify where I may be advised to cut back.

The main problem that has remained though is my overdraft. Since my incoming funds have reduced I am finding that I don't have enough after paying the essential bills (mortgage, gas, electric, water etc) to reduce the balance of the overdraft down. I am also in a position where whilst my incomings cover all my outgoings I don't have the flexibility to cater for the unseen (car repairs, MOT, vet bills) as they crop up and this can scupper me on occasions adding a little more to the overdraft.

My overdraft currently stands at approximately £2700. I have been thinking about looking into the option of transferring my overdraft onto a credit card. (so long as I can find one with a 0% interest for 12 months) Is this my best course of action or are there other options available to me? How would I do this? I'm not sure how my credit rating stands at the moment so that's the next thing to check!

Many, many thanks, sorry for the essay but I wanted to go in to detail.

Cheers,

Rob

Butti

Rob,
Have you had a look round at whether you have anything to sell - through ebay or the like? Is there any other way you can boost your income - letting a room for example.

B

costaerer

What's the interest on your overdraft?

WASHER

The problem I see with transferring the overdraft debt is, if your car needs work then you will probably end up using your overdraft again once you have cleared it, therefore you could end up with twice the debt you have now. Repay it slowly and ask the bank to reduce it gradually, beware though banks can and do withdraw overdrafts with very short notice.

Post an SOA and we will see if we can reduce your outgoings further.

WASHER.x.

Croc_Mad

Hi there, thanks for all replies. My girlfriend moved in with me to share the bills and we have a lodger. Nothing we own is worth selling. Will have a look to find out overdraft charges when I get home as I'm at work.

Thanks, Rob.