Can't get out of my overdraft...

clg86

I'm with Halifax and pay the £12.50 a month to have an overdraft of £300 without any daily charges. However, if I go over this amount I get charged £1 a day up to my arranged overdraft. If I go over my arranged overdraft I get charged £5 a day.

I'm trying so hard to get my overdraft but these charges, although only small, are making it difficult By the time all of my bills have come out after pay day, I'm close to the £300, then I need petrol and food and before I know it I'm paying an extra £25 on top of the £12.50 a month.

I've tried to cut down on shopping/using my car/daily spending, but I'm really struggling.

Do you have any tips on how I can get out of this mini rut???

crazyguy

spend less, have no treats/nights out and clear the overdraft completely

avstar

Maybe you could post a statement of affairs on the debt board (or here) so we can see how much you have coming in, and where its all going?

opinions4u

Earn more.

Spend less.

Both.

Change to a bank that doesn't charge.

Can you move the debt to a different form of borrowing (e.g. credit card that charges interest at a lower rate than £1 a day)? *care with this - don't spend extra to achieve this outcome*

Push standing order / direct debits back to be overdrawn for fewer days a month.

They are the only solutions I can think of.

If you go to www.makesenseofcards.co.uk you with find a "Statement of Affairs" (SOA) form.

Complete it fully and post it on the Debt-free Wannabe part of this forum - then see what ideas and advice you get.

JimboP_2

I would definitely look at other banks - I have an overdraft capability that doesn't have any charges applicable unless I go over the limit with Nationwide - perhaps try them?

I understand cutting back is hard (had to do it myself) but the short term loss is well worth the long term gain!

ses6jwg

The only long term solution is the most difficult one - reduce your spending or increase your income.

I work in a bank and we regularly get customers looking to ways out of their overdraft.

All we can do as a financial institution is shift any existing debt to a cheaper format e.g. credit cards to 0%, loans to lower APRs

But in the long term it is down to you as an individual to face up to reality and manage your spending. The methods above just buy you time.