Pay off my overdraft

Niknac

Hi, I am currently a single mum and I have got myself in a bit of trouble with my overdraft. I have a £3000 limit and I have hit this, my wages go in every month and just pay my overdraft, I don't earn enough to cover it so I am in the red straight away. I am doing everything I can to reduce my outgoings but finding it very difficult and cant seem to clear the debt....what is the best way to get out of this mess as it is making me ill.
I also owe around 700.00 on a credit card.

lindens

look to the right >>>>>> martins debt masterclass and look at money transfer cards. you could transfer it onto a 0% interest card.

YorkshireBoy

Let's say the overdraft is costing you £30 a month.

The minimum monthly payment on a money transfer card is generally 1%, so £30 on your balance.

It's going to take 100 months, ie more than 8 years, to clear the debt.

So it looks like your only option is to increase your income. Can you do that?

Niknac

Not at the moment, I work full time and not sure how I would make any more income. I am on my own and earn a decent wage but get no help for childcare costs, we do shared custody so my boy spends have the week with his dad. What sort of thing could I do to earn more money that wont affect my current work life.

eskbanker

Niknac wrote: »

Hi, I am currently a single mum and I have got myself in a bit of trouble with my overdraft. I have a £3000 limit and I have hit this, my wages go in every month and just pay my overdraft, I don't earn enough to cover it so I am in the red straight away. I am doing everything I can to reduce my outgoings but finding it very difficult and cant seem to clear the debt....what is the best way to get out of this mess as it is making me ill.
I also owe around 700.00 on a credit card.

It would be worth posting over on the debt-free wannabe board, where you'll get plenty of suggestions about how to reduce outgoings if you post them via a statement of affairs.

EssexHebridean

Hi Niknac - first thing for you is to work through a proper budget - I'd suggest filling out the Statement Of Affairs template (link in my signature or in the sticky post at the top of the board here). Once you've done it if you copy it into this thread we can take a look and see where there is savings that you might be able to make. Try not to worry too much - we rarely come across a situation on here that isn't surprisingly easily fixable - do get cracking on the SOA as quickly as you can though, the sooner it's tackled, the better!

Make sure when you fill in the SOA it is accurate - get bank & card statements out ready to help you. It needs to reflect the way things are right now as well, now how you think they should be, or what you think we expect to see - an aspirational SOA helps nobody!

enthusiasticsaver

Can you get a 0% money transfer card?

John_G_Jones

Niknac wrote: »

Not at the moment, I work full time and not sure how I would make any more income. I am on my own and earn a decent wage but get no help for childcare costs, we do shared custody so my boy spends have the week with his dad. What sort of thing could I do to earn more money that wont affect my current work life.

Bar work in the evenings, taxi driving, thatsort of thing.

Best starting point is to post a statement of affairs, showing your income and outgoings so that people can give the best advice.

enthusiasticsaver

A money transfer card at 0% then make a plan to repay it over the period of the deal. No more overdrafts.

[Deleted User]

livinka wrote: »

Are you joking? Suggesting to a single mother who works full-time and pays childcare during the day, to also do bar work in the evening, or taxi driving? Even if she had any energy left to do that, she'd still need to pay childcare and wouldn't see her kids much.

But if that's what it takes...

Thrugelmir

livinka wrote: »

Are you joking? Suggesting to a single mother who works full-time and pays childcare during the day, to also do bar work in the evening, or taxi driving? Even if she had any energy left to do that, she'd still need to pay childcare and wouldn't see her kids much.

Then you'll just need to have a long term plan. There's no quick fixes. Minimise your outgoings where ever you can. Does your ex share the burden of childcare costs?