No money to clear my overdraft

boo2905

Hi

I'm a regular to this board but I have a problem that I just can't figure out the answer to no matter how many threads i read for ideas.

I have two overdrafts - one with HSBC and the other with RBS - both for £500 which isn't too bad. I really want to close them down but after my wage I dont' have hardly any left to clear my other debts that have more interest on them let alone put any away to clear the overdrafts.

Does anyone have any ideas? It just feels like I'll never get out of this great big vicious circle of debt that I'm in :wall:

Lucy1982_2

I stuggle with my overdraft to, although I am fortunate that I can meet all my repayments. But I have really had to cut down on my day to day spending. If I pay off the minimum repayments and actually stick to my budget I am left with about £130ish left in my account. :T

Very exciting but as things always crop up I'm never actually left with this amount. But I feel like I made some headway this month as I have actually managed to pay £50 off my overdraft. This isn't a huge amount, but it's a huge achievement!

Why don't you post your SOA and see if there is anything else that can be cut or savings made on?

SarahNeedle1872

boo2905 wrote: »

Hi

I'm a regular to this board but I have a problem that I just can't figure out the answer to no matter how many threads i read for ideas.

I have two overdrafts - one with HSBC and the other with RBS - both for £500 which isn't too bad. I really want to close them down but after my wage I dont' have hardly any left to clear my other debts that have more interest on them let alone put any away to clear the overdrafts.

Does anyone have any ideas? It just feels like I'll never get out of this great big vicious circle of debt that I'm in :wall:

Do ur SOA (see sticky at top of board) and work out how much you can afford to pay off ur overdrafts each month. Open another bank account that you can pay ur wages into, and can pay ur bills out of. Then, when u get paid each month, transfer the money u can afford to pay off ur overdrafts into their respective accounts... U may only be able to pay off a little bit each month, but at least u won't be taking any money out of them

Sarah x

david_hellier

I presume these are both current accounts? If this is the case you need to run the one with the cheapest OD to pay your bills and get cash etc and budget to payoff the other.

I suggest you post your SOA and we can work out a solution. Budgetting is the secret to paying off ODs as they are difficult to manage.

Sugar_Junkie

I've always had a huge problem with my OD (and have at the minute too). My money would go in and bring me out the OD but obviously I had to live on that money which would take me back into it again. The only solution I found was to set up a separate savings account and make a standing order putting a set amount in it after I was paid each month. It took a while as I couldn't afford to put much in but that way it didn't get spent immediately and once I had enough in the savings account to cover the OD I transfered it all back and cancelled the OD before I could spend any of it. Might be worth a try? It's worked for me in the past.

boo2905

Hi

As a couple of you have asked below is my SOA

Monthly Wage: £860.00 approx

Outgoings:

Rent (parents) = £80.00
Car Insurance = £50.24 (only 4 more payments and then start again in Jan)
Car Tax = £10.15
Petrol = £60
Food & Essentials = £40.00
Socialising = £20.00 - OH is forcing me to stay in and we borrow dvds from friends to save money
Extras eg cards, presents etc = £10/£15

Debts (Debt, Total amount left to pay, APR, Minimum Payment)

HSBC Overdraft = £500, 0%, £0
RBS Overdraft = £500 19.9%, £0
RBS Credit Card = £2606.84, 16.9%, £59.00
RBS Loan = £4253.84, 9.2%, £124.36
Mum (Car) = £1000, 0%, £0
Mum (Debts) = £608.04, 0%, £0
Mum (Backpaid Rent from not working) = £160, 0%, £200 (£50 a week)
O2 = £909.48, 0%, £0 but I try to pay back at least £10 a week
OH for holiday from March = £250, 0%, £0
Student Loan = £12074.03, 2.4%, £0

I've had some bad experiences with HSBC so that's the first one that I want to close. Also when I've paid my mum the old rent amounts I'll move on to paying her what I owe her at £50 a week.

I get paid weekly and it just seems like after all my payments I make first thing in the morning I'm left with about £30.

I've just found I've been successful at working for AQA and I've got about £45 from Ebay which is having to go towards wireless internet as my dad's always on the computer which i need to make money from AQA

david_hellier

Hi,

According to my figures you have £84.29 per week to spend on yourself. I suggest you write this in a little book (a spending diary, ebay) on a Monday and keep a note of what you spend by subtraction. My figures include £20 payoff per month to RBS, so set up a standing order from your live HSBC account to RBS. Do not use credit cards for any purchases, do not borrow any more money and pay off your mum with the amounts shown. Otherwise you're sitting pretty.

Good luck, the figures are as follows:


income weekly monthly
self 860.00
partner







total 0.00 860.00 divide by 4.33
£198.46

£198.46 total weekly income

spend weekly monthly
rent/mortgage 80.00
council tax 0.00
elec 0.00
gas 0.00
water 0.00
secured loans 0.00
TV licence 0.00
fines 0.00
car ins 50.24
car tax 10.15
petrol 60.00
hsbc od payoff 10.00
rbs od payoff 20.00
rbs loan 124.36
mum car 50.00
mum debts 30.00
o2 40.00
OH holiday 20.00














total 0.00 494.75 divide by 4.33
£114.17

£114.17 total weekly spend

Start= income - spend = £84.29 per week

wannasavemoney

David Hellier says it all and gives u the way out. Spending diary is most essential. Good luck

boo2905

Hi

Thanks for your replies - David yours was really helpful and made me look at things in a better way - however, the only thing that was missing was the credit card repayments. I think even when the minimum payment amount goes down I'm still going to try and pay £60 a month.

Other than this it looks brilliant. Just need some willpower now.

david_hellier

My apologies for missing the cc payment. Your revised weekly start figure is £70.67. You are correct, pay the same amount off each month, never the minimum.

The revised figures are as follows:

income weekly monthly
self 860.00
partner







total 0.00 860.00 divide by 4.33
£198.46

£198.46 total weekly income

spend weekly monthly
rent/mortgage 80.00
council tax 0.00
elec 0.00
gas 0.00
water 0.00
secured loans 0.00
TV licence 0.00
fines 0.00
car ins 50.24
car tax 10.15
petrol 60.00
hsbc od payoff 10.00
rbs od payoff 20.00
rbs loan 124.36
mum car 50.00
mum debts 30.00
o2 40.00
OH holiday 20.00
cc payment 59.00













total 0.00 553.75 divide by 4.33
£127.79

£127.79 total weekly spend

Start= income - spend = £70.67 per week

joeblack066

I agree that the spending diary is the most important thing here!! And aiming to have No Spend Days too, as you will get to the end of the week with cash in your pocket. Can I ask what qualification you did, and whether you could look to increasing your income, either with a better paid main job or a 2nd job?. I notice that you are doing work with AQA. Having just applied, what kind of amounts do they pay, and do you have any tips for a new applicant?