Over with the Overdraft

laurasavon

I need to get rid of my overdraft once and for all and I hope by posting on here and putting it in black and white I might stick to clearing it!

My overdrafts currently stand at -
£2.5k
and
£4.5k

So a combined total of £7k:eek:, the limits set are £8k and £5k so I'm not at a point where I've used up to my limit but I am paying silly amounts of interest each month which is such a waste


As a start I'v raided my £1 jar - £260 :j
and done some work for a friend this weekend - £90 :beer:

Not sure whether to list a few things on ebay or whether to wait for the next free listing day? I've also got some things sorted out to car boot next time I have a free weekend :T

Phelpsie001

Perhaps you could post your SOA and see where you could save some money?

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

Do you know what is making you use your overdraft so extensively?

All the best!!

laurasavon

Phelpsie001 wrote: »

Perhaps you could post your SOA and see where you could save some money?

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

Do you know what is making you use your overdraft so extensively?

All the best!!

Thank you, SOA below. I think hubby being out of work is the main reason for getting deeper into the overdraft


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1288
Partners monthly income after tax....... 0
Benefits................................ 300 (OH's JSA)
Other income............................ 600 (I do Avon the rest is PPI)
Total monthly income.................... 2188
Monthly Expense Details
Mortgage................................ 966.2
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 119
Electricity............................. 25
Gas..................................... 20
Oil..................................... 0
Water rates............................. 38.73 (under paid last year so DD has been increased this year, on a metre)
Telephone (land line)................... 10
Mobile phone............................ 80 (both tied into iPhone contracts unfortunately)
TV Licence.............................. 12.12
Satellite/Cable TV...................... 20
Internet Services....................... 10
Groceries etc. ......................... 180
Clothing................................ 10
Petrol/diesel........................... 150
Road tax................................ 5
Car Insurance........................... 80
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 (get this through flexible benefits at work)
Pet insurance/vet bills................. 0
Buildings insurance..................... 10
Contents insurance...................... 10
Life assurance ......................... 10
Other insurance......................... 56.58 (PPI)
Presents (birthday, christmas etc)...... 100
Haircuts................................ 5 (a friend usually cuts for free so just OH's)
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 1962.63

Assets
Cash.................................... 150
House value (Gross)..................... 145000
Shares and bonds........................ 2000
Car(s).................................. 15000
Other assets............................ 0
Total Assets............................ 162150

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 116667...(966.2)....0.5
Total secured & HP debts...... 116667....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft LTSB.................2500......0.........19.3
Overdraft Halifax..............4500......0.........0 (charge £1 per day rather than %)
Credit Card Halifax............2940......50........17.9
Total unsecured debts..........9940......50........-

Monthly Budget Summary
Total monthly income.................... 2,188
Expenses (including HP & secured debts). 1,962.63
Available for debt repayments........... 225.37
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 175.37
Personal Balance Sheet Summary
Total assets (things you own)........... 162,150
Total HP & Secured debt................. -116,667
Total Unsecured debt.................... -9,940
Net Assets.............................. 35,543
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

MartinSpoon

Edit: You posted your SOA as I was posting this :-)

david39

If these overdrafts are constantly running at these levels and they represent a substantial proportion, or even more, of your monthly salary, then you do need to tackle them urgently.

The bank(s) will be watching them closely and, although you may have been servicing them without too much difficulty up to the moment, the fact that you have decided to do something about it now suggests that you are becoming worried and probably cannot afford to keep them at this level.

Overdraft facilities are almost universally subject to immediate withdrawal without notice and, if the bank look at your circumstances and decide to limit their risks, then they could reduce the levels or possibly withdraw the facilities overnight. In extreme cases, this would be done on the day your salary reaches your account, the salary being used to reduce the overdraft, effectively leaving you with little or a much reduced income that month.

The same procedure could as easily be triggered by an across-the-board change in lending policy by the bank itself.

Overdraft facilities should never be considered as an unlimited-time unsecured loan. A search on this board will show plenty of examples of why. However, if you are able to reduce the overdrafts each month then that will at least give the bank some assurance that you are in control of your finances and cut the risk of any precipitive action on their behalf.

laurasavon

Thanks David, OH has been out of work for 12 months so I doubt the bank will suddenly cut off the overdrafts but we could sell one of the cars if it came to that

The overdrafts have been a lot higher so I am working on reducing them gradually each month

jellybean39

Well you look like you been making good in roads to your debts already and your soa looks quite healthy. DO you need two cars this could help alot , i know that can depend on circumstances and where you live. i was going to sell mine and the amount to get to work on public transport wouldnt have been any better off.
Just remember hun its a long road to paying them off i used to want it all done now but realised its not going to happen so when i cam on here got alot os inspiration from some brill people and some great ideas. ebay and carboots we have made 1200 quid in last two months which is brill. shows how much rubbish we had!!!!!
Good luck with everything keep us updated.x

laurasavon

jellybean39 wrote: »

DO you need two cars this could help alot

I work out of town so would need to get 3 busses which would be impossible for an 8am start and OH is setting up his own business so needs his car to visit customers

jellybean39 wrote: »

ebay and carboots we have made 1200 quid in last two months which is brill. shows how much rubbish we had!!!!!
Good luck with everything keep us updated.x

Wow. I know I have a lot of junk so if I get anything near that I'll be very happy :j:j

MrsTUS

I see you managed to clear 24k in 6 months last year! That's *amazing*, can I ask how you managed that? On the same note, can I be cheeky enough to ask how you managed to let yourself get into debt again?

You could cut your grocery budget - £180 for 2 adults is quite al,ont, we spend £220 for a family of 5, including 2 babies who need nappies/wipes, and it also included all household cleaners. Head over to the Old Style board for helpful hints and tips, batch cooking etc. Also check out https://www.cheap-family-recipes.org.uk for some really great meal ideas, homemade snacks etc

I would also get rid of your sky/cable TV and get a freeview box instead nad then see if you can get a really cheap telephone/boradband combo that is enough to meet your needs..

Do you need the PPI insurance? I thought it wasnt worth the paper it was written on these days, hence why so many people are claiming it back - could you claim your back? It might free up some cash to pay off of something...

laurasavon

MrsTUS wrote: »

I see you managed to clear 24k in 6 months last year! That's *amazing*, can I ask how you managed that? On the same note, can I be cheeky enough to ask how you managed to let yourself get into debt again?QUOTE]

Of course you can ask, we recieved a pay out from critical illness cover, some of it went towards the OD and loan and the rest (over 25k:eek:) went on two new cars
Unfortunately, a couple of weeks after buying the new cars we found out OH lost his job

MrsTUS wrote: »

Do you need the PPI insurance? I thought it wasnt worth the paper it was written on these days, hence why so many people are claiming it back - could you claim your back? It might free up some cash to pay off of something...

Yep defintaly need it, it paid out whilst OH was off sick having his chemo and is now paying out whilst OH is unemployed - would really be struggling without it covering half the mortgage so I think we're one of the few who have actually seen the benefit from paying it (I'm 26 and OH is 28 so only paid into it for 6 years so have had more out than we've paid in)

MrsTUS

laurasavon wrote: »

MrsTUS wrote: »

I see you managed to clear 24k in 6 months last year! That's *amazing*, can I ask how you managed that? On the same note, can I be cheeky enough to ask how you managed to let yourself get into debt again?QUOTE]

Of course you can ask, we recieved a pay out from critical illness cover, some of it went towards the OD and loan and the rest (over 25k:eek:) went on two new cars
Unfortunately, a couple of weeks after buying the new cars we found out OH lost his job




Yep defintaly need it, it paid out whilst OH was off sick having his chemo and is now paying out whilst OH is unemployed - would really be struggling without it covering half the mortgage so I think we're one of the few who have actually seen the benefit from paying it (I'm 26 and OH is 28 so only paid into it for 6 years so have had more out than we've paid in)

I'm glad to hear of someone who has actually benefited from it! It makes a refreshing change. Hope your OH is now fit and well and wish him every success in finding another job soon. Good luck Laura :]