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Living constantly in an overdraught.

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Living constantly in an overdraught.

edited 30 November -1 at 12:00AM in Debt-Free Wannabe
7 replies 864 views
antjaiantjai Forumite
2 posts
edited 30 November -1 at 12:00AM in Debt-Free Wannabe
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:

Replies

  • Willing2LearnWilling2Learn Forumite
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    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
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    Hi antjai and welcome to the forum :hello:

    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 work within the voluntary sector, supporting vulnerable people to rebuild their lives.

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  • WhenIam64WhenIam64 Forumite
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    If you'd like advice on your spending then the Statement of Accounts is the way to go
    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.

    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.
    Unlike some here, I am not omniscient. If I am wrong correct me. I won't take offence.

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  • NaomimNaomim Forumite
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    Talking from experience, it's a terrible idea. I have £30k+ credit card debt and balance transfers to my overdraft certainly added a fair chunk to this figure. Until you complete the SOA and can see where your money is going, you will clear the overdraft with a cc then use the OD again and have both OD and CC to pay.

    It's hard going but you have to budget to within your means to stay out of it.

    Naomim
    Credit Cards
    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
  • Unicorn_cottageUnicorn_cottage Forumite
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    Antjai - welcome!

    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
    "Everything comes to him who hustles while he waits" Thomas Edison
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness" :money:
  • Thank you all. I am just reading the thread before bed. Wasnt expecting a reply so soon. Going to complete that form for tomorrow after work. Thanks for all the replies
  • gettingtheresometimegettingtheresometime Forumite
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    What I did to clear my overdraft was to take my salary & withdraw the difference between that & the sum of the overdraft charges for that month, the amount that I decided to pay off that month and any direct debits/standing orders. I then lived on that money and that alone.

    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
    Lloyds OD / Natwest OD / PO CC / Wescott / Argos Card / JD Williams cleared :) thanks to the 1 debt v 100 day challenge
  • middleclassbutpoormiddleclassbutpoor Forumite
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    When you complete your SOA.

    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.
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