Overdraft help

js2017 · 17 November 2017 at 10:52AM

I'll have a look for them fatbelly. I think I can make some improvements with my economy 7 usage for sure!

It'll be one of the first things I change when I have some money, I'll be getting a petrol something for sure. Newer petrols MPG is just getting better + I have a feeling it's going to get pretty expensive owning a diesel over the next few years.

js2017 · 21 November 2017 at 5:00PM

Hello Everyone - I got an earlier appointment, went to the bank and managed to offset the overdraft to a loan, relieved isn't the word!

So my other loan was actually 12% I got that wrong, I had the choice to combine into a 29% or have a new loan at 29%, I went for the new one at 29% along with my existing loan at 12%, if I paid off both at the set payments (which I don't intend to do) it works out a few grand cheaper.

Firstly, a few of you said that I shouldn't go for it, I hear what you were saying and I'm grateful for the advice I've had here but I think it was my only choice, my credit is very bad and other loans I was getting recommended after soft searches were at 50%. The 29% I got I wouldn't have wanted to touch but the new overdraft charges work out to 68% so I thought it's my only option.

Now, I'm still in the deep, I'm just not days away from imminent disaster now. I mentioned above I aim to pay these off early which I have flexibility to do fairly easily through online banking, I'm not sure how to tackle these debts.

I've read about snowballing, is the idea here that I pay off the highest interest debts first? For me this would be Pounds to Pocket > Bank 29% > Bank 12%. I've read that theirs no point saving money because I won't make the interest I'm paying in interest? So at the end of the month with my remaining money I should dump it all into P2P then the loans?

I also asked a question in the budget forum about which tool to use and was just told to come here... I think I'm going to need something to build a budget, as I said I cut my spending down but don't have a budget and don't really know how to make one, if you have anything I could read up on I'd be grateful!

Cheers, Jason

patman99 · 21 November 2017 at 5:39PM

It is worth having a savings account alongside your regular one.
Each week round down what's left in your day-to-day account to the nearest £10 into your savings account.
Over the months, you will begin to build an emergency fund for the future.

As for the car. If it doesn't have a DPF ( mine is a 2008 car and doesn't have one), then nothing to worry about.

You might find loads of info on things like replacing the oil and filters on YouTube. That would save you loads.

As for your mobile. I have a 3 PAYG sim with 4gb of data for £12 a month.

Dobbibill · 21 November 2017 at 7:14PM

Hi Jason,

I'm glad you were able to get an earlier appointment and a reasonable outcome.

The snowball calculator you are looking for is here. Highest interest bearing debt first to save the most in interest charges.
http://www.whatsthecost.com/snowball.aspx

With regards to savings - As your renting, I would aim to get about £500 Emergency Fund if you can. This will cover the cost of replacing white goods - these are known to breakdown when you least expect it and you don't want to have to put the cost on credit.
Other than that throw as much as you can at your debts and overpay where possible.

The only other thing I would add is not to take things to the opposite end of the spectrum with overpayments - if you restrict yourself too much, in time, you will resent it. Make sure you have enough to make memories with your little ones, while they are still little ones.

js2017 · 22 November 2017 at 1:10PM

Thanks for your replies both!

Fortunately I don't have a DPF filter! I also do check youtube first when anything with the house or car goes wrong, not much you can't answer there!

I'm going to be taking it seriously, but yes I won't hold off on everything all of the time.

Overdraft help

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