Getting up and out of my overdraft
Discussion
I am still offered a very generous overdraft with my account. The realisation has hit me now that it is just too generous, and the generous "free" bit has dried up.
Having bought a house and kitted it out, and then got married, all of which inevitably took more money than was expected, I find myself in the same position each month where my salary goes in, and I'm just forever living "in the red". I don't get to the bottom, but its a frustrating process that needs to stop.
However I can't simply go to the bank and ask them to withdraw my overdraft, as that would mean that next time I get paid, I just won't have any money to live on for a month. I've made several other changes to my finances to help manage my money.
Is it possible, in anyone's experience, to go in and manage this in a stepped approach, and maybe withdraw the overdraft in chunks so that yes, I'll still be living in it, but at some point, will be out of it after 6 months of better planning and personal financial management
It is a Natwest account that I have, I haven't yet had the opportunity to go into my local branch and talk to them and so some advice/wisdom on here would be appreciated.
Having bought a house and kitted it out, and then got married, all of which inevitably took more money than was expected, I find myself in the same position each month where my salary goes in, and I'm just forever living "in the red". I don't get to the bottom, but its a frustrating process that needs to stop.
However I can't simply go to the bank and ask them to withdraw my overdraft, as that would mean that next time I get paid, I just won't have any money to live on for a month. I've made several other changes to my finances to help manage my money.
Is it possible, in anyone's experience, to go in and manage this in a stepped approach, and maybe withdraw the overdraft in chunks so that yes, I'll still be living in it, but at some point, will be out of it after 6 months of better planning and personal financial management
It is a Natwest account that I have, I haven't yet had the opportunity to go into my local branch and talk to them and so some advice/wisdom on here would be appreciated.
Yup, should be easy to sort.
I know Lloyds allow you to ask them to reduce your overdraught in steps - say £200 per month.
Alternativly put some money away in a seperate savings account until you have enough to clear it. You'll be losing money on interest, but not much and yhou'll have a few quid to fall back on if you run into any suprises.
Maybe wait until after Christmas
I know Lloyds allow you to ask them to reduce your overdraught in steps - say £200 per month.
Alternativly put some money away in a seperate savings account until you have enough to clear it. You'll be losing money on interest, but not much and yhou'll have a few quid to fall back on if you run into any suprises.
Maybe wait until after Christmas
CountZero23 said:
Yup, should be easy to sort.
I know Lloyds allow you to ask them to reduce your overdraught in steps - say £200 per month.
Alternativly put some money away in a seperate savings account until you have enough to clear it. You'll be losing money on interest, but not much and yhou'll have a few quid to fall back on if you run into any suprises.
Maybe wait until after Christmas
Great, thanks.I know Lloyds allow you to ask them to reduce your overdraught in steps - say £200 per month.
Alternativly put some money away in a seperate savings account until you have enough to clear it. You'll be losing money on interest, but not much and yhou'll have a few quid to fall back on if you run into any suprises.
Maybe wait until after Christmas
Definitely waiting till after Christmas. Am now in the fortunate situation that we've just reduced our mortgage payments by £300 each month, a nice saving, and have paid off credit cards etc that we used for wedding/honeymoon/etc
That's exactly what I am looking to do - reduce by £200 per month or thereabouts.
Open a second account with the same bank without an overdraft and transfer yourself 'spending money' at the start of each month and only carry that card.
Get your wages paid into the overdraft account and have all your bills set up from that one, work it out so you have money left in there after bills.
Simple
This way its easier to track your spending and keep control as it doesn't get lost in the noise
Get your wages paid into the overdraft account and have all your bills set up from that one, work it out so you have money left in there after bills.
Simple
This way its easier to track your spending and keep control as it doesn't get lost in the noise
Bertrum said:
Open a second account with the same bank without an overdraft and transfer yourself 'spending money' at the start of each month and only carry that card.
Get your wages paid into the overdraft account and have all your bills set up from that one, work it out so you have money left in there after bills.
Simple
This way its easier to track your spending and keep control as it doesn't get lost in the noise
I do this as well, and I've got a spreadsheet showing my outgoings over 3 months and calculates how much I'll have left at the end of each month.Get your wages paid into the overdraft account and have all your bills set up from that one, work it out so you have money left in there after bills.
Simple
This way its easier to track your spending and keep control as it doesn't get lost in the noise
Don't bother reducing your overdraft unless you are paying more than you otherwise would for it. Getting bank charges for going over accidentally will be counter productive.
Just do a better job of managing money. As said above, use a spreadsheet for ALL outgoings so you can see where it is going. If you still can't clear it then you will need to find a way to make more money to stop the risk of getting into a debt spiral.
Just do a better job of managing money. As said above, use a spreadsheet for ALL outgoings so you can see where it is going. If you still can't clear it then you will need to find a way to make more money to stop the risk of getting into a debt spiral.
build the cash up as mentioned, keeping the OD for an emergency.I used to be in a similar situation as the OP a few years ago but it took a relationship split to take big steps to change things for the better. This took a 3-4 years but now I'm in a situation that I have at least a minimum of 12months salary left in my account as cushion. The only outgoings is my council tax and mortgage which accounts for 20% of my monthly take home pay. I have no credit card debts, bank debts and overdrafts in both my account. My mortgage has another 4 years before it's paid off.
I have a main job which pays my main salary. However I also work as a freelance designer/artist and tennis coach if time allows - these are interests/passion which I love doing which never feels like a job anyway - massive bonus with additional income which means I leave my main income untouched a lot.
Anything I buy, I save for before purchase. At 39 years old, I aim to be completely debt free well before my 45th birthday with 3 properties on my books completely mortgage free.
My advice is if you're young enough now, don't hang about addressing your finances. Banks/lenders is more than happy to work with you. There is also Government appointed organisations that can also help with debt management.
I have a main job which pays my main salary. However I also work as a freelance designer/artist and tennis coach if time allows - these are interests/passion which I love doing which never feels like a job anyway - massive bonus with additional income which means I leave my main income untouched a lot.
Anything I buy, I save for before purchase. At 39 years old, I aim to be completely debt free well before my 45th birthday with 3 properties on my books completely mortgage free.
My advice is if you're young enough now, don't hang about addressing your finances. Banks/lenders is more than happy to work with you. There is also Government appointed organisations that can also help with debt management.
I have a £1250 overdraft on my Natwest current account which I've had for 8 years roughly. I asked them 2 years ago if I could get rid of it but they advised me to keep it just for emergencies. Once you get rid of it, it's very hard to get one back (if you feel the need).
I've only ever needed to dip into it once and it was very handy as technically I didn't really have to worry. To get back out you just have to try to spend the bare minimum.
I've only ever needed to dip into it once and it was very handy as technically I didn't really have to worry. To get back out you just have to try to spend the bare minimum.
you could:
Get a credit card with 0% on cash advances then withdraw that amount to your bank account. When the card arrives lock it away (but don't destroy it, you need to know the number incase you forget your online password) so that you aren't tempted to use it, then setup a direct debit to that card every month of the amount divided up by the number of months you think you can pay it off over.
Get a credit card with 0% on cash advances then withdraw that amount to your bank account. When the card arrives lock it away (but don't destroy it, you need to know the number incase you forget your online password) so that you aren't tempted to use it, then setup a direct debit to that card every month of the amount divided up by the number of months you think you can pay it off over.
fullbeem said:
Reading with interest as i'm in a hole
As previously posted by others. Start a proper spread sheet detailing all the money you spend each month, every penny, every cheeky Chinese takeaway, everything.You need to be honest and audit yourself and work out where you need to cut back.
A couple of years ago I was about £6k in the hole on a credit card who's interest rate was higher than when I first got it. Managed to get a loan from the bank at a much lower rate to clear the credit card and suffered paying £450 a month until the loan was clear.
Things are much better now with no debt.
Edited by AndrewEH1 on Thursday 8th December 14:40
I found it very motivating not just to plot past spending, but also to set targets for future spending. be realistic, but do a 12-month plan which shows the savings you could make in a years time by limiting your expenditure. In my case I was saving for a car, and it really helped to rein in my impulse buys as I could see it was going to blow out my savings target for the month and push me further away from my Lotus!
It's incredibly simple to clear an overdraft when you are single as you just turn the heating off, stop drinking, buy a catering bag of pasta/rice and slab of own brand pesto/similar and pretend you're living in Kabul until you've saved up that month's worth of extra income to clear the debit balance. Getting a crappy evening job makes it even easier and quicker.
Once married, none of the simple options are on the table and it takes longer but it's still easy to achieve in the long run. The key is discipline. There's always fat tonne cut and it's easy to cut it once but it only works if you keep doing it and stick at it until done.
Once married, none of the simple options are on the table and it takes longer but it's still easy to achieve in the long run. The key is discipline. There's always fat tonne cut and it's easy to cut it once but it only works if you keep doing it and stick at it until done.
AndrewEH1 said:
As previously posted by others. Start a proper spread sheet detailing all the money you spend each month, every penny, every cheeky Chinese takeaway, everything.
You need to be honest and audit yourself and work out where you need to cut back.
A couple of years ago I was about £6k in the hole on a credit card who's interest rate was higher than when I first got it. Managed to get a loan from the bank at a much lower rate to clear the credit card and suffered paying £450 a month until the loan was clear.
Things are much better now with no debt.
Done all that. Just come to the conclusion that living on my own and earning £25k of which i pay the ex for two boys in the IOM just isn't enough. You need to be honest and audit yourself and work out where you need to cut back.
A couple of years ago I was about £6k in the hole on a credit card who's interest rate was higher than when I first got it. Managed to get a loan from the bank at a much lower rate to clear the credit card and suffered paying £450 a month until the loan was clear.
Things are much better now with no debt.
Edited by AndrewEH1 on Thursday 8th December 14:40
fullbeem said:
Done all that. Just come to the conclusion that living on my own and earning £25k of which i pay the ex for two boys in the IOM just isn't enough.
Spare bedroom you can rent out? Worth talking to your ex about it? Surely she'd prefer getting a little less than nothing at all if you became bankrupt etcI've considered asking. £300 to go IOM for Xmas is a bit grinding (ferry company)
No spare bedroom. Found cheapest 1 bedroom flat in Leicester (£450) last year, now £475. No point moving as costs in moving would outweigh a price increase next year. No TV licence but found i don't watch alot of tv anyway. Work for a brewery so no need to buy alcohol of any form. Shop at Aldi.
Come to the conclusion that this country is b
ksed if someone cant afford to live on their own if they want to earning the "national average"
No spare bedroom. Found cheapest 1 bedroom flat in Leicester (£450) last year, now £475. No point moving as costs in moving would outweigh a price increase next year. No TV licence but found i don't watch alot of tv anyway. Work for a brewery so no need to buy alcohol of any form. Shop at Aldi.
Come to the conclusion that this country is b
ksed if someone cant afford to live on their own if they want to earning the "national average"fullbeem said:
Come to the conclusion that this country is bksed if someone cant afford to live on their own if they want to earning the "national average"
I don't understand how the numbers stack up with these comments. I'm paying £475 a month pretty much off a student loan. If I was earning national average instead I'd have almost £1000 spare every month. That will be less if you have kids to support, but the cost can't be that expensive surely. ksed if someone cant afford to live on their own if they want to earning the "national average"Gassing Station | Finance | Top of Page | What's New | My Stuff