It's the overdraft that's making my quest so difficult!

SkintMonkey

I've been going over my finances (again!) and I think part of the problem is the fact that I'm overdrawn every month by £600, this means, that once I've paid my shares of the bills and mortgage, I have hardly anything left for my petrol for the month (which is a lot) and the ususal necessities....

I'm trying to sell what I can, which I thought I'd use for my petrol (£80ish a month - have tried to do a car share scheme for work, but no joy), but I don't seem to be getting anywhere to stop the cycle.

Once this small beast is beaten, then I'll have some money to pay a decent amount of my credit card...I'm not sure quite what to do.

This weekend I've started a spending diary (although have nothing to write in it - hurrah), so that should help me keep in check with spending, but it isn't going to put £600plus in to my overdraft.

I suppose I should just keep plugging away...

Maz6

I totally sympathise about the overdraft but it sounds like you're doing all the right things and the spending diary should help:T

Good luck.

arielsmelody

Do you pay interest on your overdraft - how much does it cost you in a typical month (including any fees or penalties)?

moozie_2

Hi SkintMonkey :wave:

I had the same problem when I first started. I tried to resolve it for a couple of months and then I realise dit wasn't going to happen. So, I stsarted using another current account and handled that overdraft as a debt. I paid an amount off it each month until it was cleared all together.

I am now in a position where I am never overdrawn and that makes life so much easier as all my salary is mine to use how I please and not absorbed by the invisible beast

Hope this helps as an idea!

PercyPig

I had exactly the same problem with an overdraft. I found it so depressing too being permanently overdrawn and I was always worried I would reach my limit and not have any money at all. I have now done the same as Moozie and it is a real boost to now that my salary is all my own instead of getting swallowed up straight away. The worst thing for me was that I never used to include my overdraft in my debt total as it fluctuated from month to month, but now I am going to include it, so my debt total figure will go up. I know its the right thing to do though.

Good luck!

moozie_2

PercyPig wrote:

The worst thing for me was that I never used to include my overdraft in my debt total as it fluctuated from month to month, but now I am going to include it, so my debt total figure will go up. I know its the right thing to do though.

Hey Percy

Definitely the right thing to do! Once you get over the hurdle of the new total, you will know exactly what you are dealing with and have lots of satisfaction by bringing it down.

Good luck!

inmypocketnottheirs

The thing with overdrafts is regardless of the limit we seem to always spend up to it. How I got out of my overdraft debt of £800 was by phoning my bank and asking them to reduce the limit by £20 a month. Its not much, but beleive me it worked for me.

May be worth considering.

James&Shell

Cant you open a basic bank account with a new bank and use that for all your transactions and trat the od on the old account as a debt and work out a repayment solution with them

SkintMonkey

Thanks all. I'm reluctant to open another current account (currently with Nationwide) and move all my direct debits, etc as will have to change with work where my salary comes from etc and don't fancy the hassle!

Perhaps I just need to plod on with knocking it down every month and spending as little as possible. I did think about transferring the balance onto my HSBC credit card, but changed my mind and they only transfer balances from compeititors credit cards, not current accounts.

bobble_hat

SkintMonkey wrote:

Thanks all. I'm reluctant to open another current account (currently with Nationwide) and move all my direct debits, etc as will have to change with work where my salary comes from etc and don't fancy the hassle!

Perhaps I just need to plod on with knocking it down every month and spending as little as possible. I did think about transferring the balance onto my HSBC credit card, but changed my mind and they only transfer balances from compeititors credit cards, not current accounts.

Hi SkintMonkey,

I just moved to Alliance and Leicester, they did all the Direct Debits for me and will even sort out your payroll too. It went really smoothly and any missed payments in the transition period are not charged for.

Good luck

david_hellier

When you work out a budget, you need to allocate an amount towards your od. You must still be overspending slightly if your od is not going down.