Chipping away at the Overdraft

gonna_get_there

Morning all....

I am a newbie on here and been lurking for couple of years and as said in previous post's gained so much information and turned my finances around :j

My next challenge is to chip away at the overdraft, go in it every month and I am slowly chipping away at it, well by doing a monthly check on same day and it is a bit less each month :mad:

Done all the challenges on here Utilities Groceries etc etc ......and have saved lots of money :money: My question is how did you's get on when you had your Light Bulb moment like me, We are with the Halifax who have been very good and we have not defaulted on any payments to Credit Cards Loans or Mortgage, but obviously we go into the overdraft every month. So although little by little not as much every month (well I try) always end up in it.

Would a basic bank account help, but our Mortgage is with the Halifax and we have the account where you must have £1000 go in (Reward) I think, would rather do an online one (to save the embarresment of getting a no) with no overdraft facility. Just want to get rid of the overdraft.

Thanks for reading

rdchick

My next debt it my overdraft that I need to tackle, I am in the same boat as you, mine is with Halifax and it has a loan attached to it too... joys. I have to put in £1000 a month too so I am thinking I have a Santander account with no overdraft. Have my wage put into my Halifax account as usual but transfer all other direct debits (it's only phone, car insurance and GCSE payment (lol) that I would need to transfer) to my Santander account and keeping my Halifax bank charges (for the overdraft itself is £60 a month roughly :eek:) loan payment and halifax credit card payment in there (say £250) and then the rest is put in my santander account and I won't touch the overdraft

I think I am going to do this now! haha!

Hope that helps! xxx

Marco_Panettone

It depends on how big the OD is, and whether it costs you money. The Halifax Reward account should have £300 interest-free, so if you're under that then keep chipping away and give it time. You're moving in the right direction.

I'm also with Halifax, but not the Reward account, so any overdraft costs £1 A DAY! LBM made me transfer money from my old, but cheaper, student account to clear it. I then got a 0% CC offer so shuffled some things around again. Now I'm getting towards the end of the offer, but also the end of the balance from chipping away every (weekly) payday by Standing Order and DD for the minimum payment every month.

Post your current SOA as there may be areas you can still save in to put towards the debt.

rdchick

My overdraft is £3000 and costs me £2 a day, but I plan to throw about £400 a month at mine and hopefully by my birthday in October I will be overdraft free! Horray!

ElmerFudd

Marco_Panettone wrote: »

The Halifax Reward account should have £300 interest-free, so if you're under that then keep chipping away and give it time.

This isn't the case. If it is the case Halifax needs to reimburse me a fair wack of money.

Edit: I've checked this out and it only applies to the "Ultimate Reward" account.

gonna_get_there

Thanks all for the replies.

Think I might do as you rdchick, get a basic account just for mortgage and transfer all the other dd, could help a bit.

Back to the searching I go, anyone got any ideas what are the best ones.

gonna_get_there

Der!!!!

What I meant to say is keep the Halifax just for the mortgage and get basic for all the other.

mavvymoo

Mine is £2,000 and I am trying to chip away at it every month.But it never seems to go down ! So I am going for the last CC first get that out the way.Then throw everything at the OD

I am determined by the end of this year both these will be gone !! Then just the mortgage to go which to be fair should go down quickly once I am in position to over pay.

That is my plan but lets see if life gets in the way lol:rotfl:

mavvymoo

Forgot to say great idea on checking the amount every month on the same day :T I never thought of doing that !!! Will defo start doing that and I am sure that will inspire me (if it is slightly better than the month before):)

Thank you

gonna_get_there

mavvymoo wrote: »

Mine is £2,000 and I am trying to chip away at it every month.But it never seems to go down ! So I am going for the last CC first get that out the way.Then throw everything at the OD

I am determined by the end of this year both these will be gone !! Then just the mortgage to go which to be fair should go down quickly once I am in position to over pay.

That is my plan but lets see if life gets in the way lol:rotfl:

Hi Mavvymoo

Yeah mine is £2500, start of the month looks healthy but half way through don't look good, I adjusted all my Directs/standing orders to more near pay day that helped a bit.

We bring in enough to cover all payments but as always something crops up, so you feel like you not getting anywhere cause you using the dreaded overdraft Have got another account with Halifax, may transfer all dd over to that and just leave mortgage with the overdrawn one and see it that helps, least I may see some more come of it and not be tempted to transfer any of it.

determined_new_ms

what I did was got an account with 0% od for a year and then each month cut it down. Then when that ended I returned back to my A&L account where the od was a maximum £5 a month and continued to reduce it. Can you get a 0% cc to transfer the od to and then pay it off in the 0% period?