So What would you do?

Jo.G

We have a problem with O/D (£1800 over 3 accounts). My own account has gone from £200 to £700 in the last 6 months and I've always been up to that limit. I didnt even ask for it, the Natwest just increased it and then I needed things I hadnt budgeted for (new specs, higher cost of childcare over holidays). I thought about the 0% credit card option but I wouldnt have enough spare cash to pay off what I'd need to pay off every month to clear the debt within the duration of the 0% term. I have decided to reduce my o/d by £100 each month by actually asking the bank to reduce it after pay day. This way, I cant go over my new limit without incuring the charges. I'm hoping that within the next 12 months we will only have a £200 o/d on the joint bills account and hopefully we wont be using it. I hate O/D!

pinkkat8910

newshoes wrote: »

Yes, that's true - I shall have to put my ethics on hold for a little while. As well as my spend-thrift activities. The list with a buffer for treats is a good idea - just knowing I can buy some chocolate, or a bottle of wine or a glossy mag will make things seem less unjust (is it painfully clear I am dreadfully spoilt?). But wouldn't it be great if I was so good I brought the fiver back home and put it in the treats jar? Then I could treat us all to something if it added up.

I am very aware that some people run a household including all bills etc on what I fritter on nothing at all. I know I am silly and shallow and obsessed by 'living a lifestyle I can't afford'. Times have become harder for me and I am swimming against the tide in terms of adapting to the change. But I am determined to get my feet on the ground and my head out of the clouds and do something about it. Plus it would give my long-suffering husband less to worry about as he has to manage the 'real' money, pay the mortgage and bills. He really doesn't need to worry that he'll have to bail me out again.

Its not a case of you being silly and spoilt ... trust me, we've all been there hence why we're all on the 'Debt Free Wannabe' board.

I imagine the majority here (myself included) have been irresponsible with their money and had one too many treats and that is why we've ended in this predicament. You've acknowledged you need to change your lifestyle or things could get worse, and heck thats what we're all here to do

Just really give it a go, I would hate for you to get yourself in a worse situation!!

And yep the £5 buffer always works for me hehe ... I couldn't deprive myself of everything ... wheres the fun in that?!

selfemployeddebtbuster

I find it really hard when I do the supermarket shopping not to slip extra things in my trolley..shopping on line has helped even when you have to pay delivery as I dont get the impulse for extra things and also I can check in the cupboards if Im unsure wether Ive got it or not..The jar thing is a great idea, I have a similar system for school dinners...the start of each new term I write envelopes out with the date so 7 envelopes and put £6.50 in which is what the lunches cost each week so then I am not struggling each Sunday night to find the change. Also I put £1 a day into a sealed tin for holiday money( we go caravaning in britain) so by the following year we are well on our way and I dont miss £1 a day. You do need will power but If you seal the jars and post the money through a hole in the lid you may be less tempted to pinch from the following weeks jar...

rayday2

You will be able to afford your ethics when you get overdraft free all you need to learn is some self discipline.

For example a glossy mag is that the same as a couple of pound of organic vieg - which do you feel more comfortable buying.

Its all about living within your means, which is important. Everyone should do it and to be honest not many do so you will be in an elite club when you manage it!

Somewhere along the lines we as a nation have become confused with needs and luxuries, find the line again and you will live very comfortably and afford a few luxuries and those luxuries will be all the sweeter for the journey you have took.

Kevicho

If you are thinking of transferring to a 0% credit card, do it through quidco.co.uk and go for an egg card, as you will get £35 cashback.

Agree with others, you really need to cut down that shopping bill, be more inventive, as Martin says cutting costs doesnt always mean cutting quality.

Also check out the old school board for help with said shopping bill and food ideas.

Also if at times you are unsure where the money is going exactly, keep a diary and all you receipts, that way you will arm yourself with the facts.

Good luck!

rayday2

If you do go credit card route after you have transferred ring the card and ask them to lower the card limit to what you just put on it.

ltm07

Don't know if this helps but have you thought about transfering your account to Nationwide? We have had loads of hassle off Abbey for not paying enough off our O/D & they have gradually cut our limit down from £1550 to £400(which is a blessing really as APR is 16.8%)! Have 2 O/Ds with Nationwide,one of them for years & they have never rushed us to pay it off(at the end of the day i can't understand why banks do rush us to pay them off as they are making a hell of a lot of interest). Also the APR of 7.75% is quite reasonable.

Kevicho

rayday2 wrote: »

Somewhere along the lines we as a nation have become confused with needs and luxuries, find the line again and you will live very comfortably and afford a few luxuries and those luxuries will be all the sweeter for the journey you have took.

Too true, i wonder if any of us would survive back in the 20s or beyond, without our luxury items and time saving gadgets.

Luckily I dont as i would miss my laptop terribly lol

newshoes_2

Oh, so wise, you lot. Nice to know that I'm in good company, because I feel guilty spending so much on well, who knows what? I'm going to have a mooch around the other boards to find some tips. Have already saved 20% at H&M after Martin's newsletter, and they really were necessary purchases- or my son would have no clothes that fit! I saved £14 yesterday because of this website. Marvellous. And the Tesco clubcard voucher has just come through. £5 'free' shopping. There were vouchers for all sorts of extra points or money off - but I was very realistic and they're not for things I need so I saved the one for money off organic veg - and shredded the rest before temptation struck. See? I'm learning.

rayday2

Every little bit helps and that is the most important thing to learn. Well done!

Maybe you would actually benefit from having your own online diary on here if it helps keep you focused. Just a thought!