Almost at breaking point!!

Lea74

So things are moving along and I am feeling alot more confident (well as much as can be) with my finances. Have made some great cuts in expenses and have negotiated well with my creditors. Of course I am not going to have a life again until 2020 ;-)

Just one point that is bothering me is my overdraft. Not sure how to deal with it. It is rather large and also the interest is very high.

I could wrap it up in my DMP (self managed) but am concerned that as I have my mortgage with my bank it may raise some bells with them.

Any suggestions or thoughts on how to get rid of an a large and boring overdraft.

Thanks,

eyeopener2

Hi

I think you have separate secured and unsecured debt. If you change banks and just treat your overdraft as another debt in your DMP it won't effect your mortgage one bit. Obviously if your in a fixed deal the fact that your in a DMP will have a huge effect on getting the best deals but its not the end of them world as we seem to be locked into a low interest environment for a while.

Many people have gone into DMPs when their mortgage is where they have their current account/credit cards/loan/etc.

E2

Lea74

Thanks E2. I do already have 2 CC's with my bank and they are on DMP. I have been avoidng this for ages. Not sure why but I havent been keen on closing bank account and putting it into DMP. (probably just a comfort thing).

I have had a chat to the bank about a payment plan on my OD but they werent keen and suggested that I open another account (which I have already) and then self manage the OD, i.e. not use it and pay off a little each month along with interest. I think that this will take ages though and wont make much of a dent.

I think I may go to the bank on monday and have a chat, see what they can do.

eyeopener2

The only problem I see with opening another account at the same bank is that they are in control of you, rather than you being in some sort of control with them. Remember, also, that they can move money between your accounts without your say so ( for example if you held any sort of balance in your current account it would be swiftly moved to the other account/credit cards without your permission), which is why the advice is to always have your current account at a bank seperate from your debts.

Have a chat with them but be a little wary.

E2

Lea74

eyeopener2 wrote: »

The only problem I see with opening another account at the same bank is that they are in control of you, rather than you being in some sort of control with them. Remember, also, that they can move money between your accounts without your say so ( for example if you held any sort of balance in your current account it would be swiftly moved to the other account/credit cards without your permission), which is why the advice is to always have your current account at a bank seperate from your debts.

Have a chat with them but be a little wary.

E2

Sorry should have mentioned I have opened a different account with another bank. Looking long term though is this a good idea. I am not sure why am stalling on this one as I a DMP on my other 11 debts, but my OD seems to be a bit difficult for me.

Lea74

So some more positive changes made. Managed to reduce my mobile phone bill down by GBP7 a month. I know not much but it all adds up.

So far saved £15 pm on Sky, £15pm on Gas, £10 on Water, £7 on mobile, £7 on home insurance. That adds up to £54pm. Woohoo!! Getting there :-).

More savings to happen in the next few months when somes contracts come to end, home emergency cover, telephone and broadband and then also appliance cover. Another possible saving of £40 pm.

Cant believe that I have found a way of saving £100.00 a month with not too much changes in lifestyle. That is £1200 a year!!! Could kick myself for not making these changes sooner and basically flushing money down the toilet.

Lea74

OOh also forgot to mention I have paid off my arrears on my electricity. It has taken me a year to do so but at least now the money I put on my prepayment meter is what we are using.

thehappybutterfly

Excellent progress Lea! All these little things add up don't they? How is your other job going? Are you still P/T and self employed? Did you ever get a lodger?

ETA : I can understand your reluctance to do anything about your OD as it's with the bank your mortgage is with. We're on an interest only mortgage and we're too scared to bring attention to ourselves in case they force us onto a repayment. We could never afford it. Our latest deal came to an end a month ago but we decided not to renegotiate for this reason and just went on to a variable rate. The payment has gone up but only by £45 which we can manage.

Lea74

thehappybutterfly wrote: »

Excellent progress Lea! All these little things add up don't they? How is your other job going? Are you still P/T and self employed? Did you ever get a lodger?

Yip still working hard :jbut it is worth it. I havent got a lodger as yet. I need the room for my self employed work but will consider it next year.

Have a fabby weekend.

Lea74

What I find amazing is how much my husband (now ex) and I used to earn and have in a month and what my sons and I now live on (and with a stretch can manage with).

What a waste!! If only we had been more sensible and saved and lived a more frugal life and appreciated the things that mattered the most. (who knows our lives may have turned out differently)

I dont want to sound like I am boasting or gloating, but yes I had Jimmy Choos, and Tods handbags etc and No I wasnt any happier. They are just things. In fact I feel so much more in control now, looking after my own finances (as little as they are) myself and I appreciate things, especially the little things, so much more.