We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Overdraft and loan
Options
DLGSLA
Posts: 1 Newbie
Hello I’m new to MSE so I’m not sure if I’m in the right place? After a little advice to cover my debt. Between myself and my partner we owe around £6k debt (such as very, credit cards etc). Natwest is my only bank and only ever has been, I don’t have a credit card with them, but have an overdraft with them which I’m living in the red due to maternity leave (£1.5k). We are struggling at the moment only due to the amount of debt we are paying out monthly! Is it worth asking for a loan to cover all the overdraft and debt so we’re just paying one debt over a period of time? If so what are the likely chances we will be successful? My partner now has quite a high paying job and I will soon be going back to work but will have nursery fees to pay. Thanks in advance! 
0
Comments
-
Hi,
No, you don;t want more debt, you need either money management or debt advice.
An SOA is the place to start, consolidating existing debt just does not work.
http://www.stoozing.com/calculator/soa.phpI’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Welcome to the forum.
I agree with sourcrates - complete the SOA via the link provided. You can format it for MSE and post it here and the good forum members will see if they can offer suggestions to suit your situation.
Consolidation loans don't work and just get you further into a debt spiral. Please ditch this idea.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
If you can't be the best -
Just be better than you were yesterday.0 -
Agree, do not get consolidation loan.
However , do work out what spending has got you into the debt and then work out strategies to mitigate the spending.
Solve that problem and you can then work on reducing the debt , highest apr by highest apr. As you have said the oD is main problem , so calculate how much it is costing you and then live frugally to reduce the dependancy.Debt is a symptom, solve the problem.0 -
Simple answer as everyone else says, Complete a Statement of affairs, post it here, and stop spending. Cut right back on everything that is a 'want', only buy what is a 'need', like rent/mortgage, council tax, utilities, food, car to get to work. Everything else you can do without. Be brutal, like chopping back a tree, whittle it down to the bare branches.
IlonaI love skip diving.0 -
Agreeing with everyone else here (you'd not have seen that coming, would you!)
No to consolidation - it doesn't work, it just moves the problem.
Step 1: SOA as stated above
Step 2: give yourselves a proper working budget and learn to stick to it - this will take a bit of time as you adjust, make changes and find out where you can make savings on your current outgoings.
Step 3: Get that overdraft gone and if further children are planned save for the next lot of maternity leave ahead of time so you don't find yourselves in the same situation again.
It may be that once we see your SOA the advice will be to set up a new bank account away from NatWest - but the priority at the moment is to work out what can be done to get rid of the OD. Personally I truly dislike overdrafts as they are what I call "dangerous" debt - the bank could call you tomorrow and say they are calling it in and there is nothing you can do about that - not the kind of unstable situation that any of us would think ideal. The good thing is though that you've spotted the issue and are looking to tackle it.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
6K is manageable debt and with two of you earning should be possible to pay it back.
As others have said do a SOA and work out your surplus/deficit. -£1.5K down on a current account is pretty bad, especially if it's your only card. Do you have other funds you can use if the worse case scenario happens as overdraft gets withdrawn?
Once you have received your pay, I would recommend getting your current account up to a positive balance as quickly as possible.
Make sure all your credit cards are on 0% interest switch them over if you can. If you pay back £250-£300 a month that will allow you to pay off the cards quickly.
If you cant get all of them onto 0% then just pay the minimum on the 0% cards and pay as much as you can on the other card, do minimum payments all all but the highest interest card.0 -
Can i just add that sometimes consolidation loans do work!
I now have one. i went with my local credit union as i couldnt get credit anywhere else
i borrowed £3700 to pay off my high interest credit card repayments are now a more affordable £150 a month instead of £300 a month the card was costing me and its saving me a fortune in interest
i have found most people on here will tell you not to get a debt consolidation loan but so long as you remove your overdraft or cancel your credit card once they have been paid off with the loan and dont take any more credit then they can work. It's working for me
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.6K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards