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  • FIRST POST
    • ToPostAnon
    • By ToPostAnon 13th Jan 20, 7:54 PM
    • 13Posts
    • 12Thanks
    ToPostAnon
    Aiming to pay off overdraft by 2021
    • #1
    • 13th Jan 20, 7:54 PM
    Aiming to pay off overdraft by 2021 13th Jan 20 at 7:54 PM
    Hello

    I am hoping a diary will help with staying on track. I currently have an overdraft of £1400 which is about to increase to 40% and I need it gone.

    Also have very £350
    Lloydís £1500
    M&S £1800
    Aqua £150

    Trying to be but not very good at doing the right thing and very lazy.
    No spend day today and not very much money left to pay day.
    Bills are about £850 and income is £1850 so I should be doing much better than I am.
    Need to get a handle on this and get things sorted.
Page 1
    • Socajam
    • By Socajam 13th Jan 20, 7:59 PM
    • 724 Posts
    • 1,094 Thanks
    Socajam
    • #2
    • 13th Jan 20, 7:59 PM
    • #2
    • 13th Jan 20, 7:59 PM
    If bills are £850 and income is £1850 how do you use the 1000?
    You should be able to save 300 towards an emergency fund and use the 700 to clear you debts.
    You could clear Very and Aqua in one month - that two bills gone in one month
    • charlotte1988
    • By charlotte1988 13th Jan 20, 10:46 PM
    • 50 Posts
    • 124 Thanks
    charlotte1988
    • #3
    • 13th Jan 20, 10:46 PM
    • #3
    • 13th Jan 20, 10:46 PM
    Good luck!

    I find keeping track of what I spend (App or with pen and paper) helps me cut down and pay more towards debts.
    Pay off all your debts by Christmas #179 95.14/3741.73

    Sealed Pot Challenge #140
    • ToPostAnon
    • By ToPostAnon 14th Jan 20, 5:20 PM
    • 13 Posts
    • 12 Thanks
    ToPostAnon
    • #4
    • 14th Jan 20, 5:20 PM
    • #4
    • 14th Jan 20, 5:20 PM
    Thank you. I know I should not be in this situation. I am going to pay the aqua this pay day and reduce the overdraft by £125.
    The very is 0% so I am going to leave that for the moment but itís day will come soon.

    no spends today and hoping to get out of going out on Saturday which would help a lot.
    • ToPostAnon
    • By ToPostAnon 14th Jan 20, 5:22 PM
    • 13 Posts
    • 12 Thanks
    ToPostAnon
    • #5
    • 14th Jan 20, 5:22 PM
    • #5
    • 14th Jan 20, 5:22 PM
    Charlotte 1988 what app would you reccommend please. I don’t tend to have a lot of apps mostly just food ones but I imagine this would help.
    • charlotte1988
    • By charlotte1988 14th Jan 20, 11:29 PM
    • 50 Posts
    • 124 Thanks
    charlotte1988
    • #6
    • 14th Jan 20, 11:29 PM
    • #6
    • 14th Jan 20, 11:29 PM
    Charlotte 1988 what app would you reccommend please. I donít tend to have a lot of apps mostly just food ones but I imagine this would help.
    Originally posted by ToPostAnon
    I have tried a few, but I prefer the app 'spending tracker' (it has an image of a brown wallet). I like that I can set up my incoming/outgoing payments and see where I will be in a week/month/year.

    Undoubtedly I will probably try a different one in a week though
    Pay off all your debts by Christmas #179 95.14/3741.73

    Sealed Pot Challenge #140
    • FtbDreaming
    • By FtbDreaming 14th Jan 20, 11:37 PM
    • 161 Posts
    • 294 Thanks
    FtbDreaming
    • #7
    • 14th Jan 20, 11:37 PM
    • #7
    • 14th Jan 20, 11:37 PM
    With the new interest rates coming in April id probably prioritise getting rid of the overdraft prior to then... £400 a month left on it would have it clear for April.

    When i asked to reduce it years ago they said they would do a full credit check every time they reduce it: i don't know how true that was but i ended up just keeping my overdraft. Im seriously thinking of bringing it down to something small in time for April though.
    • ToPostAnon
    • By ToPostAnon 15th Jan 20, 8:11 PM
    • 13 Posts
    • 12 Thanks
    ToPostAnon
    • #8
    • 15th Jan 20, 8:11 PM
    • #8
    • 15th Jan 20, 8:11 PM
    Thank you. I got the spending app. Will see if it helps.
    I would quite like to get rid of the small aqua card and then get this cancelled. Then focus on overdraft. Iím not sure I can manage £400 a month.

    Spent £16 on food shop earlier but didnít get very much. Trying to keep February free of unnecessary spends.
    • ToPostAnon
    • By ToPostAnon 17th Jan 20, 3:44 PM
    • 13 Posts
    • 12 Thanks
    ToPostAnon
    • #9
    • 17th Jan 20, 3:44 PM
    • #9
    • 17th Jan 20, 3:44 PM
    2X no spend days today and yesterday
    Small payments to aqua and M&S to round them up - not strictly necessary but works better for me.

    Going to reduce the overdraft by £100, it’s a small start but looking at next months spending it seems the best thing to do.

    Doing the 365 days penny a day challenge, seems to be going well. Hopefully a low spend weekend and week then payday Friday 24th and a much needed night out in London. Having said no to everyone for what feels like foever I am really looking forward to going out and letting go for a night but need to be tight for the next week.
    • enthusiasticsaver
    • By enthusiasticsaver 17th Jan 20, 3:58 PM
    • 9,772 Posts
    • 22,925 Thanks
    enthusiasticsaver
    I would definitely focus on the overdraft and get rid asap if the rates are going up to 40% in April.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • badmemory
    • By badmemory 17th Jan 20, 4:19 PM
    • 3,036 Posts
    • 4,911 Thanks
    badmemory
    What are your charges now for your overdraft I'm sure it isn't free? If you were in it for the whole month at £1400 it will cost you less than £50. So yes get rid of it (you can keep the overdraft limit without ever going into it).


    The charges you save can then be snowballed into your other debts. The most important thing to remember about overdrafts is that a bank can call them in at any time, they are not like other debts where you need to pay a minimum per month & as long as you stick to that you are fine.
    • ToPostAnon
    • By ToPostAnon 17th Jan 20, 6:48 PM
    • 13 Posts
    • 12 Thanks
    ToPostAnon
    The overdraft at the moment costs me about £12 a month to use. When the rate increase comes in it will be about £25 a month if I donít change anything.
    I have an expensive February so going to reduce it by £100 on payday. More would be nice but Iím not sure how realistic that is so doing this on payday and see how it goes.

    If I donít reduce my limit then I will just keep using it so need to reduce the limit in order to pay it back.
    The thing is once the aqua is gone it will be a whole debt finished which is quite a good feeling and whilst it has a lower interest rate at 30% the charge difference is minor so I donít really want it hanging around for another 6 months whereas the overdraft will take time to sort out as itís much bigger.
    • Bizzywizard
    • By Bizzywizard 17th Jan 20, 8:29 PM
    • 8 Posts
    • 27 Thanks
    Bizzywizard
    I switched my bank account to Nationwide flex direct it offers an interest free overdraft for 12 months (need to pay in £1000 a month), my overdraft is £2000! Might be worth doing the switch and then gives you an extra year to get out of your overdraft and save the £12 a month you are currently paying.
    • Naomim
    • By Naomim 17th Jan 20, 8:42 PM
    • 1,338 Posts
    • 3,260 Thanks
    Naomim
    I'd suggest you complete an SOA to see where your money goes. If bills are £850 and you earn £1850 but use your overdraft there's a surplus disappearing somewhere.

    Naomim
    Credit Cards £33,220.42 NOV 2019

    Here's my diary: A Ditherer's Diary Again
    • ToPostAnon
    • By ToPostAnon 18th Jan 20, 8:28 AM
    • 13 Posts
    • 12 Thanks
    ToPostAnon
    A switch would be a good idea but I have previously missed quite a few payments so nobody wants to give me a new bank account which is quite understandable. I wouldnít lend to me either.

    I pay -
    £503 a month mortgage
    £136 Council tax
    £50 Phone
    £100 travel
    £103 entertainment
    £75 utilities
    £5 insurance

    3x credit cards
    Plus overdraft

    At the end of the year I would like to have paid off the overdraft and aqua and be on the way to paying back M&S with Lloydís going last.

    I would like to buy a house at some point but I donít think it will be possible until this is a bit more sorted out.
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