Small but unwanted debt

The_Moo

Your overdraft interest and bank charges are costing you half of your holiday savings every month.

You should really be throwing all your spare cash into paying this debt down to the point where you will not have bank charges otherwise it's £50 down the drain every month. It would be worth going on a cheapo holiday this year and cutting back on your spa stuff and clothes buying for a few months to pay this down more quickly.

The_Moo

Also, with having an overdraft, it is so very easy NOT to pay this back, ever! You reduce it by £150 on payday but there is always the temptation to spend back up to the limit, unless you are either very disciplined or you ask the bank to reduce your OD every month. I paid mine back by asking the bank to reduce the limit every month.

Other people on this board have opened a new bank account, with NO overdraft facility and then used the new account as their main account, paying back the old OD every month until it was gone, then closing the account. You need to cut up your old bank cards to stop you dipping into the overdraft again though!

Onetirednurse

Ok, so I've pooled all my money into the paying off debt. Feel a bit unsteady not having a 'savings' plan as such, but then I could have paid off my debt in 10 months at this rate- so need to focus on that

Onetirednurse

The_Moo wrote: »

Also, with having an overdraft, it is so very easy NOT to pay this back, ever! You reduce it by £150 on payday but there is always the temptation to spend back up to the limit, unless you are either very disciplined or you ask the bank to reduce your OD every month. I paid mine back by asking the bank to reduce the limit every month.

Other people on this board have opened a new bank account, with NO overdraft facility and then used the new account as their main account, paying back the old OD every month until it was gone, then closing the account. You need to cut up your old bank cards to stop you dipping into the overdraft again though!

Thats a good idea- I went into the bank today to ask for a payment plan to get it reduced and they said they couldn't do it. How easy would it be to switch?!

The_Moo

That's probably why they were so keen to get you to lump your credit card debt in with the OD! Banks rarely have your best interests at heart.

Switching banks should be very easy. I think there is a guide somewhere on this site. Most of them have a switching service that will move all your direct debits etc. for you. Just make sure they don't give you an overdraft facility.

The_Moo

The MSE Banking guide is here

Have a look at 'how do I switch'. There's a lot of helpful advice in the Guide.

MacsReturns

Onetirednurse wrote: »

I'm considering selling my car to cut costs and getting a bike as I live 1-2 miles from work, however my boyfriend does live 5 miles away and it's useful to have a car for night shifts as It's not a nice area to walk through at night. Plus my family are in bristol and it's been essential/cheaper than train to see them!

You could just get a bike and use it when you're on days. Saves on petrol if nothing else. Maybe then you wouldn't need the gym

Help? How does my budget look? I'd like to have paid off half the debt in 12 months time and will be signing up to nursing bank, although won't be able to do as MUCH work as I'd like to have a bit of a life!!

It's 'having a life' that's costing you so much - if you just wind it back a little you can clear the debts in a year, and then you're free of the worry and those overdraft charges. Debt will eat up more of your life than a year of being careful will. You can do it; you've qualified so can clearly set and achieve goals. Good luck :beer: