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    • antjai
    • By antjai 15th Jan 20, 7:35 PM
    • 2Posts
    • 2Thanks
    antjai
    Living constantly in an overdraught.
    • #1
    • 15th Jan 20, 7:35 PM
    Living constantly in an overdraught. 15th Jan 20 at 7:35 PM
    Hi Forum. It's been a little difficult - but here I am. I have been living in a 2100 overdraught for the past year, getting charges. My salary falls short each month. Today I went over the overdraught so will be charged till next week till I get paid. This has been the final straw. I do not have an existing credit card otherwise I was thinking of getting a debt balance transfer card and pay it off at once so I can pay monthy on a credit card. I do not know what to do for the best. If anyone can help I'd really appreciate it.

    Thanks a lot on advance
Page 1
    • Willing2Learn
    • By Willing2Learn 15th Jan 20, 7:39 PM
    • 5,199 Posts
    • 4,840 Thanks
    Willing2Learn
    • #2
    • 15th Jan 20, 7:39 PM
    • #2
    • 15th Jan 20, 7:39 PM
    Hi antjai and welcome to the forum

    We need to see your Statement of Affairs (SOA), so that we know your exact circumstances. Then we can give better advice, guidance and support. Please complete the online SOA form, then click on the 'format for MSE' button, and copy & paste it into this thread
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • WhenIam64
    • By WhenIam64 15th Jan 20, 7:46 PM
    • 999 Posts
    • 668 Thanks
    WhenIam64
    • #3
    • 15th Jan 20, 7:46 PM
    • #3
    • 15th Jan 20, 7:46 PM
    If you'd like advice on your spending then the Statement of Accounts is the way to go

    I do not have an existing credit card otherwise I was thinking of getting a debt balance transfer card and pay it off at once so I can pay monthy on a credit card. I do not know what to do for the best. If anyone can help I'd really appreciate it.
    I can confirm the madness of this approach. I spend about 1K a month on my CC and get 0.5% cashback in it - so 1k * 0.05% *12 = 60 in cashback. The 1K I would have used from my current account is in a savings account yielding 0.01% interest so a further 1 in interest onto the 60.

    I would have spent the 1K a month anyway on normal spending but the CC companies are paying me to use their card rather than my own money. It is completely and utterly bonkers that you can make more from spending than saving.

    The trick though is to keep track so you don't overspend your savings - which is what the SOA is for.
    Unlike some here, I am not omniscient. If I am wrong correct me. I won't take offence.
    • Naomim
    • By Naomim 15th Jan 20, 7:55 PM
    • 1,338 Posts
    • 3,261 Thanks
    Naomim
    • #4
    • 15th Jan 20, 7:55 PM
    • #4
    • 15th Jan 20, 7:55 PM
    Talking from experience, it's a terrible idea. I have 30k+ credit card debt and balance transfers to my overdraft certainly added a fair chunk to this figure. Until you complete the SOA and can see where your money is going, you will clear the overdraft with a cc then use the OD again and have both OD and CC to pay.

    It's hard going but you have to budget to within your means to stay out of it.

    Naomim
    Credit Cards 33,220.42 NOV 2019

    Here's my diary: A Ditherer's Diary Again
    • Unicorn cottage
    • By Unicorn cottage 15th Jan 20, 8:09 PM
    • 429 Posts
    • 559 Thanks
    Unicorn cottage
    • #5
    • 15th Jan 20, 8:09 PM
    • #5
    • 15th Jan 20, 8:09 PM
    Antjai - welcome!

    You will always get help here. Sending through your SOA will help us identify and suggest routes that are open to you. Whatever the solution you can do this.

    Unicorn
    Following the Martin mantra "Earn more, have less debt, improve credit worthiness"
    • antjai
    • By antjai 15th Jan 20, 8:54 PM
    • 2 Posts
    • 2 Thanks
    antjai
    • #6
    • 15th Jan 20, 8:54 PM
    • #6
    • 15th Jan 20, 8:54 PM
    Thank you all. I am just reading the thread before bed. Wasnt expecting a reply so soon. Going to complete that form for tomorrow after work. Thanks for all the replies
    • gettingtheresometime
    • By gettingtheresometime 15th Jan 20, 10:00 PM
    • 5,095 Posts
    • 12,669 Thanks
    gettingtheresometime
    • #7
    • 15th Jan 20, 10:00 PM
    • #7
    • 15th Jan 20, 10:00 PM
    What I did to clear my overdraft was to take my salary & withdraw the difference between that & the sum of the overdraft charges for that month, the amount that I decided to pay off that month and any direct debits/standing orders. I then lived on that money and that alone.

    In addition to that I any money I got from eBay etc went into the account & wasn't touched so effectively was paying off the overdraft
    Lloyds OD / Natwest OD / PO CC / Wescott / Argos Card / JD Williams cleared thanks to the 1 debt v 100 day challenge
    • middleclassbutpoor
    • By middleclassbutpoor 15th Jan 20, 10:06 PM
    • 652 Posts
    • 607 Thanks
    middleclassbutpoor
    • #8
    • 15th Jan 20, 10:06 PM
    • #8
    • 15th Jan 20, 10:06 PM
    When you complete your SOA.

    You will need to ensure that you are spending less than you earn and creating a surplus which you can reduce your overdraft.

    Until you have got the knack of doing this and budgeting, there is no point even thinking of debt consolidation through loans of transferring onto a credit card.

    The only issue you may have is with the increases to overdraft interest rates of late, you will need to get quite aggressive with your SOA to make this happen.
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