Advice please?

Megan97

Hi,

I'm a part-time teacher looking for some advice please? I have been with my bank since 2013 and now have a Graduate account with them. I have an overdraft of £600 and a credit card with a limit of £1200.

Due to financial issues over the past year, I'm finding that whenever I get paid now, I'm pretty much straight back into my overdraft as I essentially "lose" half of my wage to get out of it if that makes sense? So when I get paid £1200 (just above) in wages, it takes me out of my overdraft but once I've paid my rent I'm back on the border. After bills, I'm back in. This has been a constant cycle for the past few months.

Would it be best for me to try to get another account and have my wages paid into that, whatever is left over is then what I'm actually left with- not back into the overdraft? Then I could use that money to pay off the overdraft/credit card (currently at £800 on it)?

I hope this makes sense- any advice would be greatly appreciated!

Thanks

YorkshireBoy

If you start to pay your income into another account there's every chance your overdraft will be called in.

The best action you could take would be to increase your income.

benbay001

Unless ive misunderstood the question, the money remaining at the end of the month will remain the same. The only way to solve the issue is to reduce your outgoings so that you can pay off the debt.

Head over to the debt free wannabe sub forum where someone will be able to figure out where your budget is going wrong.

soulsaver

Are you paying interest/charges on the o/d?

Willing2Learn

benbay001 wrote: »

Head over to the debt free wannabe sub forum where someone will be able to figure out where your budget is going wrong.

And when you start your new thread on the DFW board, it would be really helpful if you could post up your completed Statement of Affairs (SOA).

And welcome to the forum Megan

Ergates

Megan97 wrote: »

Hi,

I'm a part-time teacher looking for some advice please? I have been with my bank since 2013 and now have a Graduate account with them. I have an overdraft of £600 and a credit card with a limit of £1200.

Due to financial issues over the past year, I'm finding that whenever I get paid now, I'm pretty much straight back into my overdraft as I essentially "lose" half of my wage to get out of it if that makes sense? So when I get paid £1200 (just above) in wages, it takes me out of my overdraft but once I've paid my rent I'm back on the border. After bills, I'm back in. This has been a constant cycle for the past few months.

Would it be best for me to try to get another account and have my wages paid into that, whatever is left over is then what I'm actually left with- not back into the overdraft? Then I could use that money to pay off the overdraft/credit card (currently at £800 on it)?

I hope this makes sense- any advice would be greatly appreciated!

Thanks

Over time, is your account balance getting better?

e.g.: 6 months ago, you started the cycle at -£500, now you're starting the cycle at -£300 (or whatever).

Or. Is your situation staying the same month-on-mont - i.e. your situation isn't improving with time.

If the former - wait it out. When I started work it took months to pay off the overdraft I'd built up as a student. Then eventually my account stayed in the black for the whole month (that was a good moment!).

If the latter, then you need to either increase your income, or reduce your outgoings. Find some way of reducing your rent or bills, eat cheaper, cut down on non-essentials. Unfortunately there are no easy options - it'll be hard and you won't like it.