£200 left on my overdraft. Not desperate but going to be frugal for a few months

[IncessantNameChanger]

No idea how but I am £3795 into my 4k overdraft. I’m normally never in overdraft. I had to unexpectedly pay £1400 for a new clutch and some thing on my car and it’s just built up. This isn’t a begging thread don’t worry, no chance of anyone starving, but plenty of chance I might be eating beans on toast a lot if I don’t try to reign things in.

Im thinking as my car costs 26p a mile I might walk on the school run when I can ( doable but it’s a big hill so I do avoid it) run down my freezer and try to live what’s in there (random, out of date herbs mostly!) I could empty it shelf by shelf and throw out date things until it’s empty. Put aside £15 for coffee / lunch meet ups and stick to it solidly. Maybe sell some things on eBay / Vinted? Leave my bank card at home? Move money around so I’m only spending money from an account that I ‘preload’ the weeks budget on.

Any other ideas? My biggest outgoing is food I think but I can feed us all for very little really.

If you're that skint then ideally no bought coffees or lunches if you can avoid them. Out of date food in the freezer is usually fine to eat, unless it smells when defrosted!

There's the make £10 a day threads on here which may have some inspiration. Is there any possibility of picking up any overtime or taking on a few hours of work?

Have you checked all your subscriptions, insurances etc for any savings?

Start 'repaying' the overdraft
I'd have a proper frugal few months and pay it off.
No coffees, get rid of any expenses that aren't necessary.
Get the family onboard and figure out how to pay out less and increase money coming in.

Do you get charged for your overdraft?

In your situation I would take out a First direct loan £7k for the maximum time to get the lowest interest rate, pay off the overdraft and any other debt and pay all surplus loan money straight back into the loan, then you can pay it back in manageable chunks.

Good suggestion about the loan! Why 7k though if she’s nearly at a 4K OD, why not 5 that’s the 4 and an extra buffer?

whats the FD rate? 3.1%?

Typo.., 3.3%?^^

Ebay is a good idea.
Martin Lewis has advice on current accounts that give cash back for switching bank account -would that be feasible?
Check your reward cards (Tesco, Nectar, Boots advantage etc) - is there anything you can use on those?
Yes to leaving the car at home as much as possible.
If you work and don't get sick pay, try not to get ill until the finances settle down (wear a mask/try and avoid bugs especially covid)

Defo look at getting a loan and then cancel your overdraft facility/reduce it to a 200 buffer.
Overdraft interest is usually eye watering now.

Get rid of the car?
Get an extra job?

£1,400 on repairs for a car is a lot. I’d trade the fucker in. I have a colleague who’s constantly paying for repairs for her car, it’s like Trigger’s broom.
What are your other outgoings?

@bluffysummers I might be misremembering but I think the 3.3% loan starts at £7k, less than £7k is at a higher interest rate (I think). So I'd apply for that and pay the excess straight back once I'd paid off my debts.

Re the things past dates like the herbs you mentioned, most BB dates don’t mean it’s gone off. So don’t throw food away unless it’s things like fresh meat over it’s Use by date.

Meal plan for the contents of the freezer.

Re budget your life

Have a proper rethink of your finances. Go on money saving expert website and read the v v good tips.

I did this about 5 years ago when a redundancy threatened. Went from bugger all savings to a nest egg saving comfortably in bank and no where near my overdraft.

I just stopped spending on shit for a while, shopped my wardrobe, cut subscriptions, ate out the cupboard a couple of days a week etc.

but, most importantly I started tracking every spend, used an app.

don’t do it now as much, pay rise in new job. But still think about, do I need something or just want it.

Your overdraft must be costing you an absolute fortune
i would aim to pay that off asap

Think you’re right!

OP might be worthwhile having a play with some loan calculator tools to see what the difference in Monthly payments is, but a loan with a low interest rate is definitely going to be cheaper than OD fees and charges… those are merciless, designed to keep people in their OD, they make the banks a lot of money that way

My car has a warranty for life so I’m half loath to get rid. It’s Zafira 7 years old 65000 on the clock. God knows how but the clutch went. Plus a exhaust joint. I was in credit then it just spiralled. I could sell it and just use my husband’s. He isn’t keen on that idea. I’m not keen on dependence on him but it might be a short term option.

Not working as taken an extended career break to be a carer for my son until henstarts secondary in 23. It’s too mentally draining to juggle his appointments/ taxi times to SEN school.

i haven’t looked at how much the overdraft costs. I should do that. I will do that now.

meal planning from the freezer is a good idea. It’s full as is the food cupboards.

I have been stupid keeping my overdraft so high. I just stupidly thought it was a comfort buffer in case of emergency. Until I dipped into it

What exactly does the warranty cover if it doesn't cover any of the £1.4k of work you've had to have done to it?

Not sure there's any need to be so judgemental, OP has said she takes her child with SEN to a lot of hospital appointments, not sure a £3 coffee whilst she's waiting is the cause of her £3700 overdraft.

But I'm sure everything in your life is perfect and that's why you feel you can judge others.

My mum always said 'if you can't say anything kind then don't say anything at all.....'

Oh don't be a twat eh?

Op I've found having a review with mh bank to be really helpful lately, I assumed they'd just be trying to sell me stuff but actually been really helpful in ways I can reduce borrowing/maximise saving and to see where my money is going. MSE debt free boards were good for me when I was in a pickle, worth a look there for ideas, good luck.

A warranty for life is not worth a great deal. Read the small print and see what it actually covers. Not a lot will be the answer.

Yes good idea to nip the overdraft on the bud, and you're lucky that you have capacity to reign it in and pay it off.

Also look at cutting down gas and electricity if you're not already. Run everything down, not just the food.

Cancel subscriptions, even cutting out Netflix for a few weeks.
Renegotiate or downgrade any services you
might use.

Walking to school will save pennies but worth doing. See if you can car share with someone for longer journeys and contribute towards petrol costs.

By coffee I mean meting up with a friend for lunch once every week or so. I’m not sure a life with no interactions with friends is a life I’d find worth living tbh. I mean cut back like ask for cake and tap water rather than tea and a sandwich. The other option is driving to my mates house and eating her food for a catch up 😂 if she pays my petrol of course…

I live very rurally so it’s a two mile hill. Fine if you don’t factor being back in time for my sons taxi. Sometimes I don’t feel like frogmarching my dd up the hill. I’m lazy, what more can I say?

The warranty doesn’t cover the clutch or exhaust as exhaust is a perishable and the clutch is wear and tear. But it’s covered everything else so I’m hoping bar new tires it should ‘touch wood’ be good for a while.

I honestly don’t squander money. No real idea how it’s doubled in a few months basically. I do need to look back and see what I’m spending it on. It’s first time I’ve dipped into it since we had building work.

Anyway no one is paying it off except me so even if I am the biggest CF going with cash it only hurts me, so no need to get in froth on my behalf. It will be paid off. I’m just looking for ways to do that faster.

Honestly did I say I have a 7 year old low mileage car? So please don’t stress. There’s asset to repossess at worse case scenario.

The loan is worth looking into thanks. I hate having loans as that feels like real debts some for credit cards. They are all paid down. Part of my mistake I think is stupidly thinking this was also ‘my available cash’ of course it’s just debt like any other debt.

It's the not so hidden cost of living. I've cut my spending hugely butter bank account is just treading water.