Would you open a new current account if you were me? Overdraft.

[Littleideasbigbook]

Context: Got divorced from a really physically and financially abusive marriage (think broken bones) in 2016, I was pretty much living in my overdraft since. Long story but I didn't get any furniture, he kept the house. Because I was on legal aid my solicitor was awful, I got 10k from a marital asset house worth 210k because his parents gave us 11k deposit 10 years back then made redundant, went back to university to do MSc, so had to pay for that as well as get crappy rented houses, deposits, fully refurnish etc. Started on a Band 4 job in NHS, worked my up, bought a house on my own Nov 2018 with my divorce payout for deposit, got my aimed for Band 7 job in April this year .

I was £2,600 overdrawn pretty much every month for 4 years. Today I am 80 quid overdrawn. There are £195 worth of Direct Debits to come out, which will take me to minus 175 and I need 100 for the next 15 days until I am paid (2 teenage DS and one 9 year old DD need feeding) so will be 375 overdrawn by payday. Lockdown and wfh mean I won't be paying petrol/cafes/running DC about.

Do you think I should open another current account up, get my salary paid into that and just pay my bils and £100 off my overdraft?

I am determined Christmas isn't going to screw up my finances. All 2 of DC presents are bought (ipad, PS5) DS1 is getting £150 driving lessons and I will spend about £100 on my mum, dad and nephews. Monthly income is £2,571, bills are £1,400?

Just feel like seperating it out might help me get it down faster? I want to start 2021 with all my income being mine. WWYD?

Typo : 275 Overdrawn after DD.

I don't know what would be best for you to do... BUT fuck me you are amazing!! How you've turned things around in 4 years is just incredible. Don't have any advice at all 😂

@rhowton

Thank you! That is a really nice thing to say. Nobody really acknowledges that (least of all myself) I have just been in survival mode and beating myself up because I got into debt. You have made me cry a bit!

I am flabbergasted you managed to buy a home with £10k deposit!!

I used to have debt in an overdraft. I found it better to open an account for day to day and pay the overdraft off as a debt.

But I made sure my current account couldn't gave an overdraft on it.

I would open a new account. As psychologically it shows yiur amazing progress. Well done on everything you've achieved!

All above board
Would just prefer not to go into it

Quick post - fucking hell your amazing. I'll try advise on the overdraft later but just wanted to say how amazing you've done in 4 years.

Wrong thread

You can only have one current account unless you use the same bank.

I admire what you've done but don't understand why you need to open a second account

I don't know you OP but I'm proud of you. Well done

And yes, a new current account with a plan to pay off £100 a month sounds like a good idea. Enjoy your new life

@arewethere

You can only have one current account unless you use the same bank.

I admire what you've done but don't understand why you need to open a second account

This isn't true. I have 5 current accounts.

@Jroseforever it was actually 12k deposit as I saved a bit on top and its shared ownership 75% for a keyworker scheme up in North Yorkshire in a rural area. So not that impressive (as I don't own 100% but its 3 beds, with a garden, surrounded by allotments and quiet. I love it.

@Littleideasbigbook

Context: Got divorced from a really physically and financially abusive marriage (think broken bones) in 2016, I was pretty much living in my overdraft since. Long story but I didn't get any furniture, he kept the house. Because I was on legal aid my solicitor was awful, I got 10k from a marital asset house worth 210k because his parents gave us 11k deposit 10 years back then made redundant, went back to university to do MSc, so had to pay for that as well as get crappy rented houses, deposits, fully refurnish etc. Started on a Band 4 job in NHS, worked my up, bought a house on my own Nov 2018 with my divorce payout for deposit, got my aimed for Band 7 job in April this year .

I was £2,600 overdrawn pretty much every month for 4 years. Today I am 80 quid overdrawn. There are £195 worth of Direct Debits to come out, which will take me to minus 175 and I need 100 for the next 15 days until I am paid (2 teenage DS and one 9 year old DD need feeding) so will be 375 overdrawn by payday. Lockdown and wfh mean I won't be paying petrol/cafes/running DC about.

Do you think I should open another current account up, get my salary paid into that and just pay my bils and £100 off my overdraft?

I am determined Christmas isn't going to screw up my finances. All 2 of DC presents are bought (ipad, PS5) DS1 is getting £150 driving lessons and I will spend about £100 on my mum, dad and nephews. Monthly income is £2,571, bills are £1,400?

Just feel like seperating it out might help me get it down faster? I want to start 2021 with all my income being mine. WWYD?

What an amazing, inspirational woman you are. I’m in awe of you - so much respect for what you’ve achieved

@arewethere

I was thinking of just a basic account that my salary gets paid into and transferring over £1500 to cover bills and then pay off my overdraft. Then keeping the 1k in my basic account to cover food and spending. I have Nov payday, December payday and Jan payday and then my overdraft will be paid off? Then I can remove the overdraft facility and my income is there and I can get saving? Does that make sense?

I think I like the psychological comfort of my money being in 'pots' and one pot is paying off debt IYSWIM instead of one homogeneous mass?

You can have current accounts with multiple banks.

I’d definitely open a new one, if you’re transferring DD’s and stuff some pay out for you to switch everything over so could be worth looking into as it could help to clear off the od!

I think you’re amazing, and have done a brilliant job. Well done you!

This is exactly what I’ve done. I keep the account with the OD just in case I really need it, but otherwise everything else goes in and out of the ‘new’ account.

If you’re not wedded to your bank, have a look at switching incentives. My sister got about £150 for switching to HSBC. The process is really simple these days, they do all your regular payments too.

I have done the same, worked really well for me not to have my salary pouring straight into my overdraft, I felt better paying it like a debt

Open a Monzo get you salary paid there - you can open it online in minutes. Keep the current account for security in case you need although they may withdraw o/d facility if salary not going in and ask you to pay it back.

Blimey op well done you.

If still working for the NHS you will need to let them know very soon of new bank details for November's salary.

Well done you, OP! That’s amazing and so inspirational.

What’s worked for me if getting my salary paid into a normal bank account and then transferring any spending or fun money over to a Monzo account. Super easy to set up. And I love their money pots- you can round up spend to the nearest pound into a savings account.

@Jroseforever

I am flabbergasted you managed to buy a home with £10k deposit!!

I brought a house with a 6k deposit!

@RosieLemonade

A 3 bed. With a nice garden . Ina lovely location ?

Just two years ago?

Either
A) help to buy
B) your property was unbelievably cheap
C) many years ago
D) your income is secured and very high!

@Jroseforever - what on earth are you getting at? I have already told you my house is shared ownership and part of a key worker scheme? My 3 neighbours are a paramedic, a teacher and ex military. I pay part mortgage, part rent on it. The hospital I work in serves a large rural farming area and doesn't have great transport links so nobody wants to live/work here, I bought my house as part of a rural enablement scheme. Where do you live?

I think the poster asking about your house is just jealous.

I would open another account and pay the overdraft off as debt. Seeing your wage swallowed up by an overdraft each month can be demoralising and encourage people to think ‘well I’m already overdrawn so i might as well buy X Y or Z’ adding to the problem.

A lot of people have 2 bank accounts 1 for bills 1 for spending.

Although some people get an overdraft facility on the second one and then end up overdrawn on both. If you are sure you can resist the temptation (which I’m sure you can) you’ll be fine.

[quote Jroseforever]@RosieLemonade

A 3 bed. With a nice garden . Ina lovely location ?

Just two years ago?

Either
A) help to buy
B) your property was unbelievably cheap
C) many years ago
D) your income is secured and very high![/quote]
A 3 bed! We did the garden though!