I have gone over my overdraft what should I do??

getreal_3

Quick question on our road to recovery that I kind of need an anwer asap...

were £3700 overdrawn and 3 weeks away from payday

our overdraft limit was £3500

what is the best way to deal with this
1.get a loan
2. extend overdraft
3.get a credit card and transfer the amount

please help?????

dancingfairy

I would go to the bank and ask them very nicely if they could extend your overdraft for a short period. Explain that you are getting paid in 3 weeks.
Obviously buy only what is necessary ie food between now and when you get paid. Eek out whatever you have left in your larder to avoid food shopping as much as possible. Whether the bank will let you or not very much depends. The bank may try and sell you a loan - see if you can think about it and ask back on here for advice - you may be able to get a better deal elsewhere with a credit card etc.

If this fails a credit card with 0% balance transfers may be the next bet depending on how good your credit is. You really don't want to be turning a short term problem into a 1 or more year loan as even if the payments make life easier you will be stuck with it for a year (or more) and will almost certainly be paying out loads in interest and it will cost you more in the long run.

getreal_3

thats great asked them and they have said yes thank god, were now going to sit and do our SOA

dancingfairy

That's great you must be a valued customer. At least they didn't try and flog you a loan or anything like my bank tried to a few weeks ago when I had a small cash flow problem. Look forward to seeing the full SOA soon.

x_raphael_xx

That's great! I once asked for an extension and was told they couldn't while I was still in the overdraft! :rolleyes:

It's all paid off now thankfully & I've just got the last loan and the CC left to pay.

Good luck for your DF journey.

beanielou

look forward to seeing your SOA.

getreal_3

Well here it is the long awaited SOA.. please note we also have two legal bills of approx £1500 and £500 to pay at some point!!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2700
Partners monthly income after tax....... 0
Benefits................................ 150
Other income............................ 0
Total monthly income.................... 2850

Monthly Expense Details
Mortgage................................ 1175
Secured loan repayments................. 0
Rent.................................... 200
Management charge (leasehold flat)...... 0
Council tax............................. 0
Electricity............................. 45
Gas..................................... 45
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 90
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 20
Petrol/diesel........................... 250
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 5
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 120
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 39
Pet insurance/vet bills................. 18
Buildings insurance..................... 37
Contents insurance...................... 0
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 15
Entertainment........................... 20
Holiday................................. 0
Emergency fund.......................... 0
storage................................. 202
Total monthly expenses.................. 2688

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 1000
Total Assets............................ 255000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 202000...(1175).....5.89
Secured Debt.................. 25000....(0)........5.89
Total secured debts........... 227000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
halifax card...................8600......0.........0
halifax card...................94........0.........0
family.........................4000......0.........0
overdraft......................3700......0.........12.9
Total unsecured debts..........16394.....0.........-

Monthly Budget Summary
Total monthly income.................... 2,850
Expenses (including secured debts)....... 2,688
Available for debt repayments........... 162
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 162

Personal Balance Sheet Summary
Total assets (things you own)........... 255,000
Total Secured debt...................... -227,000
Total Unsecured debt.................... -16,394
Personal net worth...................... 11,606

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Burlesque_Babe

hi there - are you paying a mortgage and rent? I'm guessing you also have stuff in storage?

The bits that jump out at me are:

gas/electric are high - have a look at Uswitch to see if there is a cheaper provider.

Same for house insurance - use Quidco to get some cashback
Mobile phone - £90 - yikes!!!!!!! Switch to a cheaper tariff or go PAYG as soon as you can!

do the same for car insurance - used confused or moneysupermarket and then have a look at quidco to tie in some cashback.

I was going to suggest swapping the car for something cheaper but you seem to do a lot of miles each month. Any car sharing that could be done?

The £39 medical expenses - what is that exactly? Could you save by getting a repeat prescription certificate?

I think there are definitely savings to be had and if you can switch the o/d to a 0% card that will really help.

x_raphael_xx

getreal wrote: »

Well here it is the long awaited SOA.. please note we also have two legal bills of approx £1500 and £500 to pay at some point!!

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2700
Partners monthly income after tax....... 0
Benefits................................ 150
Other income............................ 0
Total monthly income.................... 2850

Monthly Expense Details
Mortgage................................ 1175
Secured loan repayments................. 0
Rent.................................... 200
Management charge (leasehold flat)...... 0
Council tax............................. 0
Electricity............................. 45
Gas..................................... 45
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 90 :eek: I assume this is two phones on contract?? Could you go to PAYG?
TV Licence.............................. 0 Why no TV licence? Do you have a TV?
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200 Try the grocery challenge on the OS board
Clothing................................ 20 Could you stop buying for a month or two?
Petrol/diesel........................... 250 :eek: A month!! Is this vital? Could you walk/cycle?
Road tax................................ 15
Car Insurance........................... 40
Car maintenance (including MOT)......... 5
Car parking............................. 20 Again - is this vital? Could you park somewhere slightly further away thats free and walk?
Other travel............................ 0
Childcare/nursery....................... 120
Other child related expenses............ 20
Medical (prescriptions, dentist etc).... 39
Pet insurance/vet bills................. 18
Buildings insurance..................... 37
Contents insurance...................... 0
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50 Try making gifts? Have a look at the hampers on the Occasions board.
Haircuts................................ 15 Either do yourself or try student hairdressers which are cheaper & sometimes free.
Entertainment........................... 20 Could you cut this out for a few months? Or try free entertainment (walks etc)
Holiday................................. 0
Emergency fund.......................... 0
storage................................. 202 I assume you're moving house?? Any chance friends/family could store for you?
Total monthly expenses.................. 2688

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 1000
Total Assets............................ 255000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 202000...(1175).....5.89
Secured Debt.................. 25000....(0)........5.89
Total secured debts........... 227000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
halifax card...................8600......0.........0
halifax card...................94........0.........0
family.........................4000......0.........0
overdraft......................3700......0.........12.9
Total unsecured debts..........16394.....0.........-

Monthly Budget Summary
Total monthly income.................... 2,850
Expenses (including secured debts)....... 2,688
Available for debt repayments........... 162
Monthly UNsecured debt repayments....... 0
Surplus(deficit if negative)............ 162

Personal Balance Sheet Summary
Total assets (things you own)........... 255,000
Total Secured debt...................... -227,000
Total Unsecured debt.................... -16,394
Personal net worth...................... 11,606

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Sorry I have to shoot off to work now, but HTH

getreal_3

keren29 wrote: »

hi there - are you paying a mortgage and rent? I'm guessing you also have stuff in storage? very complicated but were having to stay with family at the moment because we cant stay at home, were hoping to resolve this MAJOR prob over the coming months, but there is nothing we can do about it. Our entire contents of our house are in storage, cant put it anywhere else

The bits that jump out at me are:

gas/electric are high - have a look at Uswitch to see if there is a cheaper provider. agree, they havent reduced our bills to 0 because were not actually there

Same for house insurance - use Quidco to get some cashback
Mobile phone - £90 - yikes!!!!!!! Switch to a cheaper tariff or go PAYG as soon as you can! House insurance is because we have a 100k claim outstanding, kinda pushed the premium up!!! Mobile phone is x2 contracts, I need mine for work (job that I have only just started) bills 30/60

do the same for car insurance - used confused or moneysupermarket and then have a look at quidco to tie in some cashback. I am only 26 so insurance we cat get any lower

I was going to suggest swapping the car for something cheaper but you seem to do a lot of miles each month. Any car sharing that could be done? Have to travel alot, unavoidable and need to drive to work as I have to carry stuff

The £39 medical expenses - what is that exactly? Could you save by getting a repeat prescription certificate? Thats for HSF, its done us good as so far I have had £4k+ over the last couple of yrs in claims

I think there are definitely savings to be had and if you can switch the o/d to a 0% card that will really help.

thank you so much, can you switch outstanding o/d onto 0% c/c?

getreal_3

x_raphael_xx wrote: »

Sorry I have to shoot off to work now, but HTH

Hi Thanks, answers to yr questions:

Re mobile phones, 2 contracts one that is £30 pm and mine is 60pm. I use this phone for work so havent got much choice as I constantly have to speak to clients on the move

No tv l as were staying with family and our house is empty

Clothing I have stopped from today.. actually taking some stuff back that have labels :rolleyes:

I know def have to cut back on food

Re petrol I am considering a gas conversion, I can try and cut back but it will still be pretty high as again I need the car for work. I have not included my pay yet as I have only just started and its commission only, although I will hopefully be earning between 4-6 k a month!!! BUT I do not want to rely on that as 1. I havent earnt anything yet and 2. I will not try and get out of debt that way

Car parking was an estimate, could def cut back but some parking will still be needed

Its my b.day in 2 weeks and I have started a new rule, no presents at all, only for the children so that amount will be wiped off

ha ha ha ha the price for haircuts is great!!!! Where else would you get a ladies wash, cut, highlights and finish, one gents cut and two childrens cuts ALL that for £15?? he he he my little sister is a hairedresser, I cant give her any less than that for four hair cuts

snif snif we normally spend about 200 a month on entertainment and to cut it back to just 20 a month? I dont even know what we could do for just £20... but i guess we could just walk

we are sort of moving house... again a bit complicated, but we have the entire contents of our house in storage

this is really great doing this, just done the demotivator and my god!! we waste about 12k a year on starbucks newspapers and saying to people "dont worry we'll get this" when we know we cant afford it!!!!!!!!!