How do I repay my overdraft?

matttye

Newyorkdreams wrote: »

The main difference in my circumstance is that I don't have a debit card linked to the savings account. In order to spend the funds, I need to phyically go into the account and transfer the money into my current account, thereby creating opportunities to question whether or not I really 'need' that item I am just about to use my money on. It works for me but then again willpower and determination is equally required. When I stopped smoking, I learned that each craving lasts no more than 3 minutes. If you can get through those 3 mins then you'll be ok. You learn to distract yourself or create barriers or opportunities to question the belief system. This acts in exactly the same way as it creates diversionary steps.

NYD

I don't either, but I have internet banking and a smartphone which can access said internet banking at any time, so I could quite easily transfer money from one account to the other (this is instant as they're with the same bank) while I walk to the cashpoint

I appreciate not everyone has the same setup, but my main point was that you need willpower not to spend your money no matter which account it's in. The roadblock presented by putting the money in a savings account is an illusion because it's still easily accessible.

Also, the other benefit of just keeping it in your current account is that you'll pay the bank less interest.

Newyorkdreams

That is very true re interest and totally agree with the point about willpower. It's also about education and I feel that this it the most important factor. Educating yourself about positive money management is the first step in the debt free journy.

I disagree with your comment that putting your money in a savings account is an illusion in terms of creating a barrier. It certainly works for me as I don't use SMART phone technology and need to access the internet via a laptop or PC and you don't have these things whilst out shopping (normally!) : )

Different horses for different courses as they say!

NYD

Sharon87

With Halifax, because it's not interest and it's a charge per day, it's better off saving it in a savings account, so you save for example £100 a month in a savings account, once you have 2k pay it off at once.

Either that or a 0% money transfer card (like MBNA/Virgin cards) or if you wont be able to pay it back in the 0% period try a low interest life of balance card if they allow money transfers

matttye

Sharon87 wrote: »

With Halifax, because it's not interest and it's a charge per day, it's better off saving it in a savings account, so you save for example £100 a month in a savings account, once you have 2k pay it off at once.

Either that or a 0% money transfer card (like MBNA/Virgin cards) or if you wont be able to pay it back in the 0% period try a low interest life of balance card if they allow money transfers

True, I missed that it was Halifax!

[Deleted User]

Yes I have to pay £30 per month. I haven't had to pay for 12 months because they didn't charge as I was in a self managed dmp (sort of).

Anyway so until I get below £300 I still have to pay the £30 per month charge.

I hate the new system because of this very reason. Of course I joined before this system but got stuck.

Other debts have taken priority and now it's the turn of the overdraft as everything else is on 0%.

I cleared about 6K since 2012 and now I want to finish it all of this year.

Thanks all !!!

ValHaller

assj wrote: »

As you can see from my signature, I have a 2K overdraft with Halifax.

I want to repay £50 pcm. I have heard that you cannot reduce the OD amount monthly because you are credit checked each time and you may not even be allowed the original amount (i.e. need to repay in full)

Problem I struggle to keep the O/D below -2000, I use it like my own money and feel good that I'm paying off other debts with any money left from my O/D. Mainly because I'm always O/D and the money available is almost always exactly what I have earned that month or likewise.

I don't know if my post is clear or if anyone can lend any advice. This seems to be my worst debt to deal with as I can manage credit card debts and have dealt with a lot over the last 12 months

Look at this thread https://forums.moneysavingexpert.com/discussion/4571929 The advice on becoming debt free has to be pay off your overdraft and live entirely in the black before you pay off any other debt.

Having the overdraft taken off you can happen very quickly and will seriously scupper any plans you had to keep your credit record clean.

[Deleted User]

That was exactly my plan to keep my record clean-ish. I did have an arrangement to pay at the very start - but I couldn't help this and it was my light bulb moment.

I'm not sure what to do now, I feel like things get slower the more you pay off.

I'm not helped by the fact I have to buy two cars this year and pay for my insurance and service bill for both. But hey when you need it you need it I guess.

heyjude2013

Hello,

I'm in exactly the same position! Becasue I 'live' off my overdraft, I have decided to open a new account with out an overdraft.

I'm now going to have all my wages paid in to this new account and then pay off a certain amount off my overdraft on my other account monthly. I've decided that for me, that will break the ties of thinking its my money, and allow me to treat it like my credit card, ie a debt which I need to pay off monthly.

I got my new current account set up yesterday, so its early days for me. I'll let you know how it goes!

x

ValHaller

heyjude2013 wrote: »

Hello,

I'm in exactly the same position! Becasue I 'live' off my overdraft, I have decided to open a new account with out an overdraft.

I'm now going to have all my wages paid in to this new account and then pay off a certain amount off my overdraft on my other account monthly. I've decided that for me, that will break the ties of thinking its my money, and allow me to treat it like my credit card, ie a debt which I need to pay off monthly.

I got my new current account set up yesterday, so its early days for me. I'll let you know how it goes!

x

Beware. The old bank may decide to pull the overdraft from you immediately they notice that they are no longer your bank, which will give you defaults. In fact, it would only be the goodness of their hearts which would stop them

The thread again https://forums.moneysavingexpert.com/discussion/4571929

raq

Poppy_Jane_Parka wrote: »

I'm in almost the exact same circumstances so look forward to seeing advice!!

Snap,,, me too ,,, mine is slightly higher but I also cannot pay anything towards it at the moment. Looking to paying in June 2013.