How to get out an overdraft?

Debtoverit

Hi the long and winding road, please don’t apologise. Thank you for the helpful advice, and well done on the progress you have made so far! 

ryanm8655

Debtoverit said:

Hi the long and winding road, please don’t apologise. Thank you for the helpful advice, and well done on the progress you have made so far! 

Just noticed your debt levels in your signature. Might be worth an SOA for more tailored advice on how to sort it. If you’re struggling then it might be worth arranging a debt management plan as then the interest would stop and you can get it gone more quickly...

fatbelly

ryanm8655 said:

Debtoverit said:

Hi the long and winding road, please don’t apologise. Thank you for the helpful advice, and well done on the progress you have made so far! 

Just noticed your debt levels in your signature. Might be worth an SOA for more tailored advice on how to sort it. If you’re struggling then it might be worth arranging a debt management plan as then the interest would stop and you can get it gone more quickly...

Ryan is right.

I posted the link in post 3 (please format for mse)

Andyjflet

Ive done mine recently, forever lived in my £2000 overdraft, probably twenty years, I hate to think how much its cost me in charges. Anyway, ironically I came out of furlough reasonably well and caught up, I now leave all my wages in my account that cover any bills, then the surplus is sent to my Monzo account for spending and overpaying anything I can. If you leave an extra £50 or £100 quid in there then you can reduce your overdraft. 

K9Drea

Good thread.  My overdraft was a result of student overdraft facilities that, sadly, didn't result in a well paying job at the end of it and despite contacting my bank and letting them know I was struggling to pay more than the minimum to keep the account within the overdraft, I was never going to be able to pay it off.  They said they had tried to ring me several time (not sure what number they tried as I didn't have any missed calls) and then the following letter said they were closing all my accounts with them so I thought sod it, let them, opened a new account elsewhere and got in touch with the original bank again who said they couldn't do anything about the interest as it was more than the amount I was offering to pay monthly (£50) and the only way round it was to go into recovery.  That was 2 weeks ago...and I'm STILL waiting for them to get back to me AGAIN!

Elz_182

Hey, it's not easy, but you can and will manage it. I was scared of "formally handing" back my overdraft (so I still haven't, but I'm not using it) so I did as someone else said. I transfer most of my salary (which is paid into the OD account) into two other accounts - a joint one which covers all bills including debt repayment and a little into a sole account (neither have OD) for general spending... this means I know where I am and can leave a little in the OD account and if I have any left in the spending account it can go back in against the overdraft, but I don't actively spend from the OD account. It means I can pay off a little like £20 of that's all I can afford. Works great for me!

Db_157

Hey.

I had 12 credit cards, and the payments were on the verge of getting unmanageable. (I had made a bad job decision a few years back and things spiralled out of control)
my repayments were almost exceeding my income, I had to figure something out, so I sat down and wrote down all my card balances, limits, interest rates.
i had a family member help with the first 2 cards (2k) then rolled over the minimum payment to the next card with the highest interest rate etc.

i was able to clear several cards and after 8 months my credit rating recovered enough to be able to get a loan to cover all my cards and reduce my monthly outgoings and stop worrying about not having the money to pay them off.

delta13

I did as what others have suggested - I opened a second current account (without an OD facility), made sure my income was paid in there and my bills and direct debits paid out, and then set up a standing order to pay off the overdraft facility. I started with paying the minimum towards the overdraft (the monthly charges) plus £5 a week on top. Then after a while and when I could afford it I would up the standing order value. In a year I'd paid it off.
It's crazy how much having that one account always in the black can have an effect on your mental wellbeing. Although you'll still owe the other bank money, your wages going into another account that's always in the black will make you feel better and in control of your debt(s) - just make sure you pay it off!