To think it’s not that unusual for people to have no money in their bank account

[Iftheclouds]

At the end of the month? I know ideally it’s good to have savings but would imagine it’s not that unusual to have any?

This is going to really depend on the social circles people move in, their age etc. When I was a student, I was permanently in my overdraft. In my early 20s I was often down to the last £20 or so by 25th of the month. Now I'm mid 30s and (along with most friends) earn quite a bit more than monthly bills come to. I'm not a huge spender (I dont spend on tech, gym memberships or beauty stuff/grooming really) so I usually have plenty left over each month.

I did grow up in a family where financial education was good. My parents would sit down checking bills carefully each month and if we couldnt afford something, we didnt get it until we had saved for it (if at all). We are quite anti credit which helps keep on top of spending.

I always have money in there. I am a saver, current account has about £1200. The savings account has considerably more in it.

Certainly up to my late 20s overdrafts, being skint at the end of the month and having credit card debt was normal. Managed to climb out the hole eventually.

I end up with very little in my account by the end of the month but because everything gets moved on payday, set amount to the bills account, set amount to childcare account, set amounts to different savings pots, and DH and I get our monthly spends of there's anything reasonable left from that towards the end of the month I move it into another savings account. I find by moving savings etc at the start of the month I'm highly unlikely to dip into it rather than waiting to see what's left at the end of the month and saving that. DH was sceptical at first but is fully on board now he's seen he doesn't feel like he's scrimping (our personal spend are generous) but this way he's less likely to fritter money away and saves more

Try Money Saving Expert's site

You have 10 days Left to apply for a three month payment holiday on mortgage credit card card finance or loan - could be helpful for Christmas. Or try to save the money from your payment holiday to have a reserve in the bank so you need to use less of your overdraft.

There is also info on switching bank accounts to get £125 for free.

Lots more tips on cheaper utilities, cash back and so on.

Try to save any little gains you make to pay off your overdraft. The site has tips on that too.

I have a small income and have historically not been great with money. I am now saving £200 a year getting my DH to trim my hair. It all helps.

@Mummadeeze

I have nothing in the bank, £26 left on my credit card until Monday. Never understand how I run out of money so badly every month. Every month I tell myself I need to sort it out. I earn a good salary but am absolutely hopeless at managing my money. I constantly feel ashamed.

Nothing to be ashamed of! But you need Money Saving Expert site. Makes it all easy for you.

Credit cards are hard to pay off. Could you move it to a 0% one and pay it down? Take a 3 month payment holiday (you have 10 days left to arrange this).

Use the budget calculator on that website so you know EXACTLY where all the money is going. Look for better deals on everything from electricity to mobiles and so on. I thought I couldn't claw back any money but using the site I've found ways to do it.

Use a cash back site when you need to make a purchase.

Be a DIY-er when it comes to beauty stuff - investing in an epilator will save a fortune on salon waxes for instance.

There is a frugal thread on here to look at too.

You can do this

I have loads of debt from a horrible episode where my mental health was poor and loads of things broke so rather than buying cheap and second hand I took it all out on credit, before I was living with my partner. My mental health is still terrible but I'm trying to get back into work but when the last job I had got rid of me on mental health grounds I don't want to ask for a reference so I'm really struggling. We rent, there's 2 kids and no savings along with loads of debt. I think I have a job(I have been offered it) but trying to find references might be what stops it and I don't know what I can do but I'm desperate to get out of debt and if i don't get the job because of references I don't know how I'll manage Christmas, we've been trying to get bits but all we've managed is things like pants and socks and dressing gowns all in the next size for the kids.

@ConorMasonsWife

I have loads of debt from a horrible episode where my mental health was poor and loads of things broke so rather than buying cheap and second hand I took it all out on credit, before I was living with my partner. My mental health is still terrible but I'm trying to get back into work but when the last job I had got rid of me on mental health grounds I don't want to ask for a reference so I'm really struggling. We rent, there's 2 kids and no savings along with loads of debt. I think I have a job(I have been offered it) but trying to find references might be what stops it and I don't know what I can do but I'm desperate to get out of debt and if i don't get the job because of references I don't know how I'll manage Christmas, we've been trying to get bits but all we've managed is things like pants and socks and dressing gowns all in the next size for the kids.

Money Saving Expert say loans from Tesco Bank are 3.4% APR which you could maybe use to clear debt?

If you need up to £15k try Cahoot or TSB at 2.8% APR.

Hope you get that job!!

[quote userxx]@Smallsteps88 Is that the app you download to your phone? Is it easy to use?[/quote]
Yes it is. Download to phone, select the store that you’re in and then start scanning barcodes as you go round. Once you’re done go straight to self scanner and select scan and go on the screen. It will put up a QR code for you to scan on your phone, then you get a barcode on your phone to scan through the till and it loads up all your shopping. You pay and go. I love it. Particularly during covid as it means I’m in the shop for much less time, no unloading and reloading my trolley, it’s all already packed exactly as I want it and no one else’s is touching it. sometimes the till requires a staff member to do a spot check on your shopping. They check ten items have all been scanned. But very quick and easy to use. I love it.

*Mummadeeze

I have nothing in the bank, £26 left on my credit card until Monday. Never understand how I run out of money so badly every month. Every month I tell myself I need to sort it out. I earn a good salary but am absolutely hopeless at managing my money. I constantly feel ashamed.*

You are living beyond your means. It's common! You look at your good income and expect it to stretch to a slightly better lifestyle than it will in fact cover. It's a vicious cycle as you probably borrow to keep up, then debt repayments consume more of your income.

Start by getting the debt under control. You have a good income, take the hit and accept having a boring few months to cut back costs a load and wipe some debt out. That will then lower your monthly outgoings.

@Smallsteps88 Brilliant!!! I've downloaded and I'm good to go, think I will try with just a few items first :)

I have £68 left in my current account and get paid on the last weekday of the month, so next Friday. This is very normal for me and I have zero savings. I don’t have much debt other than a very small balance credit card which I am meant to be using to build up my shockingly bad credit rating but that’s always up to it’s limit. I earn what I think is a fairly good wage - about £35k and our household income is around £70-75k but we live in the Home Counties, rent privately, are paying off two (used and non flashy) car loans off and our outgoings are fairly high - I spend £300 on petrol some months. I could probably cut back in quite a bit but I’ve come from a childhood of having very little so always live (and spend!) in the moment but I’m going to try really hard to save next year.

Last I saw was that something like 40% of people have less than £100 in savings.

It‘s because they are kept poor by rock bottom wages and sky high rents, not because nobody taught them how to save.

@LeSquigh

I have £68 left in my current account and get paid on the last weekday of the month, so next Friday. This is very normal for me and I have zero savings. I don’t have much debt other than a very small balance credit card which I am meant to be using to build up my shockingly bad credit rating but that’s always up to it’s limit. I earn what I think is a fairly good wage - about £35k and our household income is around £70-75k but we live in the Home Counties, rent privately, are paying off two (used and non flashy) car loans off and our outgoings are fairly high - I spend £300 on petrol some months. I could probably cut back in quite a bit but I’ve come from a childhood of having very little so always live (and spend!) in the moment but I’m going to try really hard to save next year.

Could you transfer your car loans for a better credit deal? There are some lower interest loans around right now.

*Money Saving Expert say loans from Tesco Bank are 3.4% APR which you could maybe use to clear debt?

If you need up to £15k try Cahoot or TSB at 2.8% APR.*

To be fair though, if you have poor credit or are unemployed or are financially stretched, you aren't going to get one of these loans. They tend to be for people with really good credit scores. When I was in a really bad place financially, a cheap loan like that would have been a lifesaver. But when I tried to apply, the only place that would accept me was Amigo loans at 50% apr. And you need a guarantor for that.

Money Saving Expert do have an eligibility calculator for loans which is handy as it only does a soft search, so your credit rating isn't affected.

I have discovered we are getting royally ripped off by BT broadband. Once I get that resolved I'll be better off by £50 a month!

Years ago I used to have too much month at the end of the money. Now I have savings.

I don't know how unusual it is not to have any but perhaps most people have been in that situation at some point.

[quote userxx]@Smallsteps88 Brilliant!!! I've downloaded and I'm good to go, think I will try with just a few items first :)[/quote]
Hope it helps!

@nevermorelenore

*Money Saving Expert say loans from Tesco Bank are 3.4% APR which you could maybe use to clear debt?

If you need up to £15k try Cahoot or TSB at 2.8% APR.*

To be fair though, if you have poor credit or are unemployed or are financially stretched, you aren't going to get one of these loans. They tend to be for people with really good credit scores. When I was in a really bad place financially, a cheap loan like that would have been a lifesaver. But when I tried to apply, the only place that would accept me was Amigo loans at 50% apr. And you need a guarantor for that.

Money Saving Expert do have an eligibility calculator for loans which is handy as it only does a soft search, so your credit rating isn't affected.

Yes I was surprised when the Halifax offered me a cheap loan as my credit was pretty bad. I've been banking with them for years though.

Please look into your local credit union. If you could afford to save a small amount of money you'll be able to build a relationship with an org that should give you access to cheaper credit.

www.creditunions.co.uk

To be blasé and say that being poor was down to adults making poor decisions is very narrow minded.

Couldn't have put it better myself.

I live in my overdraft. Sadly, even if we had money management in our curriculum if you are poor, you are poor. Circumstances can change but it's actually more expensive to be poor than well off. Can't afford a good quality £100 pair of boots? Be prepared to buy 20 rubbish cheap pairs at a tenner every couple of months, therefore costing you way more than the £100 you could have spent once IF you had it.
Thankfully poor people discrimination by banks and utility companies is being made illegal bit by bit.

Banks charging someone £28 OD fees who doesn't even have a tenner in their account for an unpaid direct debit, then £25 for a letter saying so, then another £28 charge for not having the funds for the original unpaid DD and letter fees is now illegal.

Charging extra money for gas and electric because the householder can't afford direct debits so has a prepayment meter is also outlawed. But there are still many ways being poor is more expensive still.

So living in an overdraft for a lot of people is the norm and fair play to them if they can stop doing that.

Me? I live in my own overdraft. It's not a big deal to me. Now the kids are older I can finally get a job to supplement OH's income and my wages will be just for treats and maybe a nice car finally.

I went through a bad time in my early 20s when I was skint and had to be really careful putting the heating on and buying food. My house was in negative equity to top up the stress even more. It was a horrible experience but it turned me into a saver.
In my early 50s I have amassed enough savings to live off for quite a few years.

A few years ago I was at the very edge of my overdraft every month. My card was declined a couple of times with lack of funds. I have no savings and a lot of debt. I the interest and charges every month was more than I had coming in. It was incredibly scary and really damaging for my credit score. After living like this for a year with everything getting worse I finally found the courage to ask my parents for a loan. I now have a better job and my debt is being managed interest free. I have some savings and a little bit of money left over each month. I was fortunate enough to be able to turn to my parents. I can't imagine how awful it must be to be sinking in debt with no way out.
I make sure I donate regularly to food banks and homeless shelters now. It was a real eye opener. I couldn't believe how quickly debt can get out of control. I wasn't going out drinking or eating out or getting hair and nails done, it was day to day spending whilst having a rubbish job that didn't cover everything. It is incredibly easy to slip into debt.