overdrafts

pantherchick

Hi there. im needing some advice about a planned overdraft that my husband has...
So he has eventually told me how bad the situation is and one of the problems is he has a planned over draft of £500 which he uses all the time... as well as all the bills and d/d that come out of his account... he is always in the red... how do I get him out of it... do I...
1 leave it as it is but try to reduce to amount of overdraft by say £50 PER MONTH.
2 tell him to open a new bank account with a different bank and move d/d to his new bank.. leaving the overdraft to be paid back as much as he can afford...
3 any other advice... please...

Archi_Bald

Whatever you do / he does, the overdraft needs to come to zero.

What does he spend his money on? Find areas to cut.

If he uses the account less, there is a potential risk that the bank will call in the overdraft in one go.

pantherchick

Archi_Bald wrote: »

Whatever you do / he does, the overdraft needs to come to zero.

What does he spend his money on? Find areas to cut.

If he uses the account less, there is a potential risk that the bank will call in the overdraft in one go.

Thanks Archi bald for your reply


Its his main account... he has a over draft but as soon as the wage is in and all the d.d are taken out. plus a large loan that he has had for awhile is paid out. he is then overdrawn...
I took him to one side yesterday and although he earns more than I do... I can tell he is struggling. ive looked at areas that I can help him with... ive taken the virgin media bill off him. the tv liecence and house insurance for now... to lighten his load. although I do pay a fair bit towards the mortgage/bills. I need to look at the best way of getting him out of the overdraft... his loan is paid off in oct. that will help him so much

trailingspouse

If you're managing your money well, and he's struggling, would it better for the two of you (as a married unit) to amalgamate your income and outgoings so that everything that both of you earn goes into one pot and everything that needs to be spent comes out of that pot?

It's not for everyone, but it seems daft for him to be paying overdraft charges when you have surplus money. Between you, you could pay off the overdraft and get yourselves on to an even keel sooner. It also gives you more control over expenditure, and as you seem to be the one with the money sense, that has to be a good thing for the future.

Thrugelmir

See if his bank will convert the overdraft into a loan.

opinions4u

pantherchick wrote: »

Hi there. im needing some advice about a planned overdraft that my husband has...
So he has eventually told me how bad the situation is and one of the problems is he has a planned over draft of £500 which he uses all the time... as well as all the bills and d/d that come out of his account... he is always in the red... how do I get him out of it... do I...
1 leave it as it is but try to reduce to amount of overdraft by say £50 PER MONTH.
2 tell him to open a new bank account with a different bank and move d/d to his new bank.. leaving the overdraft to be paid back as much as he can afford...
3 any other advice... please...

Option 1.

Set a target overdraft balance for the next day before payday. £450 in month one, £400 in month two and so on.

To achieve this, he will need to stop spending £50 on something. So what's he spending it on? Coffee? Lunches? Sports events?

After ten months the overdraft is zero. Sorted. Interest and fees saved. If he agrees to the plan and sticks to it.

(But assess if how you split the bills is fair first)

Aquamania

pantherchick wrote: »

Hi there. im needing some advice about a planned overdraft that my husband has...
So he has eventually told me how bad the situation is and one of the problems is he has a planned over draft of £500 which he uses all the time... as well as all the bills and d/d that come out of his account... he is always in the red... how do I get him out of it... do I...
1 leave it as it is but try to reduce to amount of overdraft by say £50 PER MONTH.
2 tell him to open a new bank account with a different bank and move d/d to his new bank.. leaving the overdraft to be paid back as much as he can afford...
3 any other advice... please...

3. Get him to go and see a free debt councillor such as those available from the CAB

pantherchick

Thanks everyone for your imput...
like I said I can see he has been struggling with the bills etc and I have been paying more than my way... he does have a huge loan that takes a large sum of his money each month.. theres only 9 more payments to go but its still a lot. I did say the same about lowering the overdraft by £50 per month.. and now ive taken some of the bills off of him he can try and make the move to regain his bank account. slowly but surely... he has some credit cards that I have tried to move to 0% but the companys are not helping him out, so they are another worry...
we are paying the mortgage and the council tax. home insurance. health insurance. gas electric. food. tv liecence, tv phone and broad band package... also the credit cards for each of us. the loan is the biggy one but im going to give him some money each month to pay this off quicker.. hopefully by 6 to 7 months instead of 9... thank god we both have jobs...

pjread

tv/phone/broadband - if you're out of contract, worth re-evaluating and either haggling for a retention deal or just downsizing?

Health insurance... might get shot here, but I wouldn't keep it if I was in debt, unless I knew I needed it for something ongoing.

BillJones

If the problem is that he's struggling with remembering what goes out when, would it make sense to set up a joint account, into which hiis share of the expenses goes once each month, on pay day, so that he can see exactly what's left after that?

If yoou also fund your share of the joint account in the same way then you can also show him how much of the joint burden you are already shouldering.

pantherchick

BillJones wrote: »

If the problem is that he's struggling with remembering what goes out when, would it make sense to set up a joint account, into which hiis share of the expenses goes once each month, on pay day, so that he can see exactly what's left after that?

If yoou also fund your share of the joint account in the same way then you can also show him how much of the joint burden you are already shouldering.

Thanks guys for all your advice..

Already cut the tv package deal down and got a 36.00 reduction, told them they are not loyal to long standing customers..
I've attacked every available avenue now.. now my oh has admitted how bad the finances really are. Wish he had told me earlier,
I guess its going to be a bumpy ride for the next six months, major killer is a great big loan he had. A few years back.. its finished in october so yeeha..
I will step up the anti and work more shifts at work.. not that I really want to be working 12hr shifts. And. Travelling to work like I do..
The overdraft seems berable its the other debts, credit cards, loan, mortgage.. before my own debts. The joys of married life