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Living constantly in an overdraught.
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Hi Forum. It's been a little difficult - but here I am. I have been living in a £2100 overdraught for the past year, getting charges. My salary falls short each month. Today I went over the overdraught so will be charged till next week till I get paid. This has been the final straw. I do not have an existing credit card otherwise I was thinking of getting a debt balance transfer card and pay it off at once so I can pay monthy on a credit card. I do not know what to do for the best. If anyone can help I'd really appreciate it.
Thanks a lot on advance :wave:
Thanks a lot on advance :wave:
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We need to see your Statement of Affairs (SOA), so that we know your exact circumstances. Then we can give better advice, guidance and support. Please complete the online SOA form, then click on the 'format for MSE' button, and copy & paste it into this thread
I love my job
I can confirm the madness of this approach. I spend about £1K a month on my CC and get 0.5% cashback in it - so £1k * 0.05% *12 = £60 in cashback. The £1K I would have used from my current account is in a savings account yielding 0.01% interest so a further £1 in interest onto the £60.
I would have spent the £1K a month anyway on normal spending but the CC companies are paying me to use their card rather than my own money. It is completely and utterly bonkers that you can make more from spending than saving.
The trick though is to keep track so you don't overspend your savings - which is what the SOA is for.
The law is like an ocean - have a swim but don't drown.
It's hard going but you have to budget to within your means to stay out of it.
Naomim
NOV 2019 £33,220.42
NOV 2020 £28,307.1614.79% cleared
Overdraft
NOV 2019 £4581.92
JULY 2020 £941.71 79.44% cleared
Grocery Challenge Gone to pot!!
Here's my diary: A Ditherer's Diary Again
You will always get help here. Sending through your SOA will help us identify and suggest routes that are open to you. Whatever the solution you can do this.
Unicorn
Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
In addition to that I any money I got from eBay etc went into the account & wasn't touched so effectively was paying off the overdraft
You will need to ensure that you are spending less than you earn and creating a surplus which you can reduce your overdraft.
Until you have got the knack of doing this and budgeting, there is no point even thinking of debt consolidation through loans of transferring onto a credit card.
The only issue you may have is with the increases to overdraft interest rates of late, you will need to get quite aggressive with your SOA to make this happen.