Advice please...

Little_Waster

Hi All,
Ive been looking on here for a couple of weeks now, ive never posted before so here goes. Like most other people on here, my finances are in a bit of a state, im always in my overdraft and in my reserve on my account and getting bank charges galore.

Most of the time i just draw money out of my account without thinking about what direct debits are due to be paid, they are spread throughout the month and i was just wondering if it would be any help to me if 1) i changed the dates, so they all came out on the same day...2) if i had my wages going in one account and my direct debits coming out of another, so i know each week exactly how much i needed to transfer to cover them.

Would be gratefull for any advice.....Regards Little Waster

deady

I'd open a second account so you can transfer enough to cover your bills and then you will know how much you have for the rest of the month

vaporate

Maybe set up a excel spreadsheet of some kind and calculate your cash flow system.

Little_Waster

Thanks for your advice, really need to get it sorted out as soon as xmas is out of the way aswell the other debt i have

getmore4less

Start with a SOA
http://www.makesenseofcards.co.uk/soacalc.html

Moving date of DD around is not going to solve the problem which is spending to much. It might help with the charges if you get the timing right

Work out what you are spending your money on and look for cutbacks.

If you are Barclays and using a reserve see about getting a bigger OD it is a lot cheaper.

Create a plan to reduce debt to zero by a given date.

Why wait till after Xmas start the cutbacks now.

try the debtfreewanabe board

opinions4u

Most of the time i just draw money out of my account without thinking about what direct debits are due to be paid

Transfer your spending money to a different account (e.g. leave enough money in to cover all direct debits + 10% of their value and send a standing order for £x00 a month to a second account which is the one you use for debit card and ATM spending. When it's gone, it's gone).

le_loup

Little_Waster wrote: »

Thanks for your advice, really need to get it sorted out as soon as xmas is out of the way aswell the other debt i have

There's the real problem, wait until something or other is over then "I really will deal with this". Bit like "I'll give up smoking when I've finished this packet".
Don't wait, do it now.

FoggyBrain_2

LW --- if you really are hopeless with budgetting, work out what goes in each month (X), add up all of the DD's and standing orders, add 10% safety net (Y).

X - Y = (W What you have to spend).

Take W out of the bank each month and put it in a tin. Use that tin as your personal bank --- no "forgotten" ATM withdrawals, no overdraft facility. When it's gone, you wait for next month.

Oh -- and don't take your ATM or Debit Card out and about with you. You only need to use it once a month !!

Sounds simplistic I know -- but often the simplest things do work. It has worked for me in the past ( and is in action for me right now).

anna42hmr

I really recommend you keep a track on your spending for a month or two at least, i found this really helpful, as it really was an eye opener to me as to what i was spending and how little things add up. http://www.spendingdiary.com/

i also recommend the 2nd bank account idea, on pay day leave in enough to cover all direct debits/standing orders/bills etc due out, then transfer the remaining amount into a second current account.

That way you never spend the money for bills etc, and that what is in the second account is what you have to live off for the rest of the month.

I started the two account methods a couple of years ago and never looked back since! I have not been into my overdraft since i started doing this method.

ses6jwg

set up your dds to comre out 3-5 days after payday then u know wot ur left with