Overdraft advice please...

Q1122

Hi,

I keep going into my overdraft each month to approx £500.00.

I am going to try and cut this down but does anybody have any good ideas on how to clear an overdraft?


Thanks!

rachie_2011

Go through every thing you have in coming and all outgoings. Is there any thing you can cancel...?

Q1122

Thanks... nope there is nothing that I cancel.

My friend who also has debt contacted a debt charity who suggested opening a new bank account and have his salary paid in there... I do not understand how this will work though because the overdraft will still remain unpaid on the existing bank account?

Tixy

If you open a new account elsewhere then you then need to set up a standing order to the old account, this can sometimes people control their spending better - as they can then view it as a seperate debt not their own money to spend, and it can prevent the bank recalling your overdraft at short notice and leaving you nothing to live on because all your wages are in that account.

To pay it off you will somehow have to make some changes, whether thats increasing your income or reducing your outgoings. When you posted a statement of affairs before it looked like you had £180 spare each month - if that still stands then you could set up a new bank account and then a standing order to repay £100 or £150 of this to the old account each month and you'd soon be clear of the debt.

James26

You need to write a soa and experienced members can look at your spending etc and advise you the way to go