A money question! about overdrafts! ease my nerves please

fblade1987

Hi Guys,

This is my first post in here, let alone the first post on money saving experts. I heard about this from the bbc radio 1 show that Martin was on and i thought I'd come for some advice on what to do or just some reasurance.

Back in feb I got made redundant from my old job, but i was not their long enough to gain any redunacy. Alway up to end of april i have been applying for jobs and failed to progress so i was living of my student loan and overdraft, then my old car's cam belt bust and messed up big time so i had to scrap that but need a car still so the last loan of this study year i got through, so went and so did just over half of my overdraft.

but luckly i have now found a job, It's not the best paid job in the world comes in a 4.45ph and i could only get 8 hours contract a week. so i come out with 154.27 a month.

So here comes my problem(well i think it is) im well in to my hsbc overdraft of 1000 at 472, but beacuse of my old job i got a contract phone and a laptop on credit not to metion insurance for the car, so begging of each month i automaticaly get £85 taken out of my bank, then i have petrol and upandcomming mot and tax. So until i get a stable amout of overtime from work(not until summer holidays), Im proberly still going to eat away at my overdraft. Is this ok? because it's at stages getting me really scared.

also should i go a take the full whack of the overdraft out which is now 1250, as i hope to repay it in my work placment year? and should i just carry on treating it as another loan?

please any help will be helpfull!

Thanks matt

Blacksheep1979

Why not try get a job that pays more and gives more hours - even bar work will provide more than what you're getting now. As to the overdraft if you have to use it, so be it - how else are you going to pay for what you are legally signed up to. Although you state you 'need' a car - do you really?

fblade1987

A car i don't need one, but its really helpful for me and the family beacuse my dad has an injured back and can't and not been driving for quite some time so has now gone on half pay. So i do all the driving take my dad to the hostpital, shopping genral stuff like that i know i dont need a car but i'd struggle without one.

as for the job i dont know if to wait till i know i can get more overtime in. see what its like then because talking to the people there i may be able to get 40+ a week over the holidays, plus i really enjoy the work and i know the experience gained will help me in the future too. so i dont know if to take the £1ph diffrence and get another job i know i will hate and wont gain valuable experiance

Blacksheep1979

well the £1 an hour extra (and if you get a decent job could be £2 hour diff) would mean @ 40hrs/week an extra £160-180 a month and thats IF you get 40hrs a week where you are. Seeing as you are just about making do with £150 a month an extra £160-180 should be a noticable difference - if not now maybe next term.

cupid_s

Well if you're only working 8 hours a week get a second part time job. Bar work for a couple of evenings a week or a saturday job (provided you're not already working saturdays).

You'll still get the good experience from the one you've got now but you'll get extra money to help you.

Also then in the summer you may be able to work more than 40 hours a week between the two jobs if you want to.

fblade1987

Okay i think i see what you mean! but can i ask some advice on the overdraft is it a bad idea to take the full whack out and carry on using that as a loan?

Beacuse i know that i'd be able to pay it back when im working in my placement. Or is that a bad habbit to get into?

melancholly

fblade1987 wrote: »

Okay i think i see what you mean! but can i ask some advice on the overdraft is it a bad idea to take the full whack out and carry on using that as a loan?

do you have an interest free amount, or are you paying interest on what you owe?

Blacksheep1979

If its interest free you should get as much as you can and if not using it put the excess into a high interest account. You can do this at more than one bank.... (as long as you odn't blow all the money).

fblade1987

its an intrest free one from hsbc. Also dose your overdraft carry straight over to the graduate account once you left or do you have to pay it all back before you can?

sorry for all these random questions im just preparing myself.

also sorry for my spelling i never do seem to be able to type good.

Blacksheep1979

will generally carry over and get reduced by £x every year till its down to £0 (although the overdraft is still available but charged).