No idea where to start

becksjg

Hi, I am so fed up now of living in our £5,000 overdraft and getting towards the end of each month and not knowing if we are going to manage. I am also completely fed up of the fees we pay for living in this over draft. I have completed the budget planner and it says we should have money spare each month but we dont. I am going to record everything we spend for the next month and redo the planner then but could seriously do with some advice on where to start and how to get out of this mess. Any advice and help gratefully received.
Thanks in advance.

matttye

Google 'statement of affairs' and complete one. Up to you whether you post it here or not (people can suggest cutbacks), but it will at least help you see where your money is going.

Weird_Nev

Spending diary and statement of affairs should clear up where the extra money is spent.
drive down costs, largest first. Better mortgage deal, cheaper rent, change energy suppliers and turn off stuff when not using it, 2 degrees of the central heating thermostat and run it for 2 hours less a day (max 4 hours a day!), drive less, sell expensive cars and buy cheaper economical ones (you could clear your debt in one hit if you can step down from a £10k car to a £5k one). Shop around for all car expenses and learn how to perform basic maintenance yourself.
Make sandwiches for work, don't spend a penny on coffees, cancel sky and other subscription services and make do with freeview and the internet, move to a more sensible mobile plan and cut back on your internet service.

You can make many of these changes without impacting your life at all, you will just be spending money without any real benefit. Many changes are for the better! Spending quality time with your family doing free stuff can often be more rewarding than a morning out shopping.

All the best! Get back to us with your SOA and spending diary, and perhaps we can suggest some more areas you can save.

unimaginative_user_name

Hi Becks!

Weird Nev has given you a pretty comprehensive list of areas which people can often cut back on to release extra funds for debt-busting. A couple of others I can think of are:

- have a good declutter and eBay whatever you don't need

- check out the Old Style board for tips on cutting down on grocery expenditure.

Good luck.

becksjg

Thank you so much for your replies. Will google statement of affairs and complete it and post it here. I have stacks of stuff I need to sell and was looking at doing a car boot. I have done the cheaper energy club and can save money there but havent been brave enough to make the switch yet. I shall post back later once I have more info for you.

Mort

Weird_Nev wrote: »

Spending diary and statement of affairs should clear up where the extra money is spent.

Spending diaries are good, but you have to be honest. An SOA is useful but be prepared for some potentially harsh comments if you decide to post it.

Weird_Nev wrote: »

Make sandwiches for work, don't spend a penny on coffees

It's amazing how much can be wasted on buying pre-packed sandwiches, it was a real eye opener for me.

[Deleted User]

just a word of caution about living on a overdraft; the bank can pull that facility any time they want, how would you manage if they did ?

ladymay

I don't have much to add to the above replies, apart from best of luck in your adventures! I'm just getting back on the wagon myself, there's so much information and support here.

Let us know how you get on with your spending diary and SOA

becksjg

Dont know how to quote someone so...
"Deleted User" - I know the bank can pull an overdraft at any time hence wanting to get rid of it plus the fact they charge us a fortune each month for been in it.
Mort - Will be honest with spending diary as that is the whole point of me doing it as I dont understand why we are struggling so much (although the bank charges is probably a large part of the reason).
I am very strict and never buy pre packed sandwiches or coffees at work. They are such a rip off and waste of money.
Am a little bit scared of getting harsh comments though but really need some help and ideas on how to get out of this overdraft so have no choice but to post it.

xx

eyeopener2

You don't need to Google statement of affairs, there is on in the stickies at the top of this board. Use it honestly and it may surprise you!

Daedalus

becksjg wrote: »

Dont know how to quote someone so...
"Deleted User" - I know the bank can pull an overdraft at any time hence wanting to get rid of it plus the fact they charge us a fortune each month for been in it.
Mort - Will be honest with spending diary as that is the whole point of me doing it as I dont understand why we are struggling so much (although the bank charges is probably a large part of the reason).
I am very strict and never buy pre packed sandwiches or coffees at work. They are such a rip off and waste of money.
Am a little bit scared of getting harsh comments though but really need some help and ideas on how to get out of this overdraft so have no choice but to post it.

xx

Yes they can withdraw an overdraft at any time, they must act with sympathy to your finances. Withdrawing 5k overdraft for someone who is living it would be unreasonable and ombudsman would want a word. Phased lowering of the limit is the normal policy.