The best way to pay off an overdraft that's got out of control?

[louiseee123]

Just that really for one reason or another - being rubbish with money and not keeping an eye on money being the main reason. We now have an overdraft of 500 quid, but every time we get paid it just eats it back and we're back in the same situation the next month. We get charged 1 pound a day for being in it so have an appointment with the bank to upgrade our overdraft so we don't get charges.

Would taking our money out the account and paying it back gradually, say 50 pound every 2 weeks be the best way without leaving us skint? Thanks for any advice.

I second meal planning, and for a few months try & be inventive & use what's in the store cupboards/back of the freezer, padded out with a few fresh things.

Online shopping might stop the impulse buys, just avoid the special offers unless its an essential!

Also cut back on snacks.fizzy drinks, choccy biscuits etc for the kids they don't need them!

Yes, it's best to. I'd avoid using the switching service because often your overdraft gets transferred to the new bank account, which obviously wouldn't help at all in your case. It is a pain in the arse manually switching everything, but the clean break is worth it.

Wheresmyburrito I thought I would. The account is in my husbands name, do I have to do it in his name or can it be in my name? Thanks for your help.

You can't change an account in your husbands name ( unless you hold power of attorney). He will have to do it. I would open a new account in your own name

Is the account solely in his name? Either he'll need to open a new account to transfer everything over to, or you could open a joint account and transfer to that.

Really, in terms of what goes in whose name you can do what you like. If you don't have a bank account in your own name I'd strongly recommend opening one though.

Also, it's worth keeping in mind that if the overdrawn account is only in your husband's name then he is the only one liable for the debt. You couldn't be held responsible for it at all.

Thats true. He is solely liable for it not you. Also be aware if you open a joint account both you and he would have to authorise things like removing one of your names or closing the account. The bank would not accept just the one signature.

Getting a new account and paying back £50 a month to the old one is not the way to do it. OP said they get charged £1 a day for the overdraft, which would mean paying around £30 per month (even if the OD is only £50) - a very high rate of interest.

It would be much better to do as a PP said and leave your money in the bank for as long as possible, reducing the amount you spend per month. Staying in the black for 10 days saves a tenner over the new account solution.

Another way would be to get a 0% on purchases credit card and use it for food, petrol etc so you can leave that money in the bank. I wouldn't recommend this if you haven't sorted your budget out, though or you will end up with more debt.