Advice needed

Agutka

We are in debt. About £4000 currently on 19.9% overdrafts. If we really put our minds to it we could clear this in 8 months. But we overspend. It gets to the point where there is no more money and that works well for us, as going over the overdraft is expensive business. That stops spending.

If we shifted the debt to 0% there would no longer be that threat hanging over our heads! how do we get that sense of urgency back so we can get to zero and imagine! get savings?

[Deleted User]

if you borrow money to repay the od then you may be tempted to run the o/d back up again,if as you say you can repay it in 8 months then you need to plan to leave £500 in the account every month,this will take some planning and will power but is the best option

puppey

No point doing a budget if you know you can't make it work. Start small putting aside a little extra every few weeks so you don't notice the spending money reducing. Re the 0% why don't you make a deal with yourselves, ie if we pay it all off then we get to go on a holiday/go out for a nice meal etc (as long as that doesn't put you back in debt!)

Agutka

Yes, it does seem more motivating for us to see money being thrown away to the bank, and debt on a 0% card would be invisible... We tried it before and it didn't work.

MEM62

Agutka wrote: »

We are in debt. About £4000 currently on 19.9% overdrafts. If we really put our minds to it we could clear this in 8 months. But we overspend. It gets to the point where there is no more money and that works well for us, as going over the overdraft is expensive business. That stops spending.

If we shifted the debt to 0% there would no longer be that threat hanging over our heads! how do we get that sense of urgency back so we can get to zero and imagine! get savings?

I re-phrase the question. "How can we clear the overdraft and remain debt free with no will power?" Basically, you can't. Unless you are motivated to address your finances things certainly will not improve and could possibly get even worse.

rockm87

Is the overdraft on your current account?

I had this everytime my wages were paid in it cleared the overdraft, but then i struggled and had to use it again.

i solved this by opening another bank account, and treating my overdraft as a debt, and paying a fixed amount it each month (to cover any fees or interest and a little bit more) until it was cleared.

You can always agree something with the bank, they may freeze interest while you pay it off.

Pepperoni

Have you done an SOA and seen where you can cut back?

You need to be realistic with your budget - if you know you can't survive without £ for X then try scaling back rather than completely cutting it out, etc.

My best advice is once its clear - close it and don't ever open it again. One of the best things I ever did!