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Original poster

How do I get out of my overdraft?

35 replies

onlyoranges · 07/10/2015 14:55

I am stuck in my overdraft. My limit is £2000 and I am usually around £1500 - £1700 overdrawn any money going in just keeps me around that as other amounts go out. I am at my wits end its all I can think about. I have cut back on everything I can. I am even down to £40 a week on food for 6 of us. I used to work ft then had to stop and thats when my problems started. I should have adjusted straight away but I was in hospital for a few months and when I came out I just left my finances for ages. Does anyone have any suggestions. I dread getting close to my limit (which I have done) as then I have no money at all. The bank wanted me to get a loan to clear it but thats not the answer, is it?

OP posts:
19lottie82 · 07/10/2015 15:23

Pop over to moneysavingexpert's debt free wannabe forum, they're very good at advising on these sort of situations!

Lunastarfish · 08/10/2015 18:02

There are some credit cards which permit balance transfer for overdraft. If you could pay off the sum in the designated period (or even not - there's a possibility the interest could be lower on the cc than the overdraft interest if applicable). However if you aren't working you mat struggle to get a new cc

Sparrowlegs248 · 12/10/2015 10:05

I am by no means an expert but would say don't get a loan! Worst thing I ever did. Paid off CC and OD but was then tied into a fixed payment. Ended up having to use CC and OD again....

I have paid the loan off now thank god, and am shipping away at my overdraft. It is down to 900 from 1500. Its at a bit of a stalemate now though as I am on maternity leave.

Its hard to know what to suggest in your situation as your shopping is already ridiculously low (please.....tell me how you manage that!) but what i did was to put ?10 or ?20 aside when i got paid the(into a savings account) and never touched it. Because it went straight out i didn't really think too much about it. When it got to 50 or 100 (usually 50....) I put it back in my current account and got the bank to reduce my OD by that amount. Its an arse about face way of doing it but worked for me.

specialsubject · 12/10/2015 11:45

don't get a loan.

are you getting all the benefits to which you are entitled?
have you hammered down your utilities, insurance etc with shopping around?
are you wasting no food, shopping around (if you have discounters), not buying adult clothes etc etc etc?
are you minimising energy and car (if applicable) use?

TalkinPeece · 12/10/2015 20:57

What are you spending on

  • phones
  • sky TV
  • coffees / snacks / meals / takeaway
  • taxis / buses
  • makeup
  • clothes

all areas where you can cut right back for a few months to give yourself some space

fieldfare · 12/10/2015 21:02

Download your statements for the last few months and analyse them.
See what you're spending where - can you reduce fuel bills, could you have a cheaper broadband, phone, mobile, Sky deal, are there any other cutbacks you can make?
Don't get a loan, just chip away at the od.

Original poster
onlyoranges · 13/10/2015 17:40

Thanks everyone so much for all the help and support. I do print off statements and went through everything (now that I have time). I shop around all shops for food bargains on mobile days nottalotta it takes a while but really cuts the cost. I buy any clothes and shoes second hand don't buy make up just ask for that on my birthday and it lasts a year. Never ever go out (an advantage of being ill I guess) and we never have take aways. I buy second hand clothes for dcs where I can get away with it also. It's really good people giving me check lists so I can say no we don't or yes I could cut that. Just cut our sky bill by £40 so was pleased with that.

I won't do the loan idea was worried about that. Think I will open a building society account and try and put a but in there as suggested then move it over. Like the idea of having a book not had one for years.

Anymore suggestions really welcome. You are really helping thanks.

OP posts:
specialsubject · 13/10/2015 18:27

no such thing as a passbook and you'll get even worse interest than is possible elsewhere.

look up interest paying current accounts and use those. All online banking too!

Original poster
onlyoranges · 13/10/2015 19:18

Oh aren't there. My dcs all have them. Is it just children. I am disappointed!!

OP posts:
chairmeoh · 13/10/2015 19:23

OP you sound determined. And I bet that you will get rid of that overdraft at some point.
But I have to say, rather than cutting your SKY bill by 40, why didn't you get rid of it entirely? Are there any other 'luxuries' that you are cutting back on rather than eliminating?

bearleftmonkeyright · 13/10/2015 19:26

If you go through your expenses and if you can find somewhere you can trim something then ask your bank to reduce your overdraft limit by that amount per month. For example you mentioned your Sky subscription, you have saved £40 per month. But first thing is to do a really rigorous budget. Then you can identify what you have left after you have paid out for absolutely everyting. I used Stepchange for debt advice and they were brilliant at helping me.

bearleftmonkeyright · 13/10/2015 19:29

Link for Step Change

NecklessMumster · 13/10/2015 19:33

My od was the same amount as my income and I couldn't ever manage to reduce it because it was there. After years of this I did get a credit union loan, at least the end is in sight now .I had asked my bank to reduce my od limit each month but they said they don't do that anymore

Ricardian · 13/10/2015 19:37

Just cut our sky bill by £40 so was pleased with that.

Why not cut it to zero?

ginmakesitallok · 13/10/2015 19:40

Or just cut it for a few months, you'll still get the free channels with a box.

Original poster
onlyoranges · 13/10/2015 19:49

I can see what you are saying about cutting sky but I have a disease which is doing its best to kill me, hence the fact I had to give up work very suddenly. In remission at the mo but I am at home most of the time as a result of care needs and it's a bit of a life line really as I have lost everything else that I used to do. It is a luxury but I don't have anything else at all. I used to work full time and be with people all the time and I do get very lonely now and it's my only company really in the day. My illness has affected my mental health as facing your own mortality when you youngest dd is 5 has been really scary. I really hope it doesn't sound like I am moaning just trying to explain really why I have held onto that when I have cut everything else. My vision has been affected so I struggle to read some days. I dont have a computer so can't stream movies unfortunately.

Neckless I feel your pain! I will look into credit unions thanks.

OP posts:
chairmeoh · 13/10/2015 22:45

OP I understand what you're saying with regard to your Sky.

Have you looked on moneysavingexpert.com and used their budgeting tools? They are brilliant at making you think about every penny and seeing what might be spare at the end of each month. They also help you cushion the effects of annual costs such as insurance, car mot etc.

Try not to think about your overdraft as an insurmountable mountain. Just a small reduction each month is a step in the right direction.

specialsubject · 14/10/2015 12:35

the interest paying current accounts aren't just for kids: 5% from TSB, 4% from Lloyds, 3% from Santander.

you do need minimum pay-ins which can be quite hefty - but you open two accounts and move the same money round with a standing order.

really minor thing - but there's so much on TV that there really is no need for Sky, and DVDs are available on ebay'charity shops for peanuts. a DVD player to link to the TV is £20, and a freeview recorder box is £100 or so, no subscription.

went for Sky here due to poor rural reception, after a LOT of aggro got a deal at £50 for the first year. But it WILL be going after that and I'll be buying a freesat box.

KatharineClifton · 14/10/2015 12:41

You don't need a freesat box specialsubject - the Sky box will continue working for all the free to air channel.

KatharineClifton · 14/10/2015 12:46

OP, with the cut of £40 in your expenses it's still going to take 42 months to pay it off at the £1700 limit. You need to specify a time-scale i.e. 12 months to clear it. Say on 12 months it would be £141 to cut from your budget (or make up from selling stuff). There are a lot of free ways of watching stuff online. If you really want to clear the od you need to be drastic. Have you anything to sell around the house? This is a tedious way to make money but got me out of debt eventually!

Why is there a difference of £200 in the overdraft (1500-1700) - any variable costs there that can be cut?

Electrolux2 · 14/10/2015 12:50

This reply has been deleted

Message withdrawn at poster's request.

KatharineClifton · 14/10/2015 12:50

Ah, sorry I missed that you don't have a computer. Ignore that part of my last comment then. Netflix is cheaper than Sky though.

specialsubject · 14/10/2015 14:23

thanks - but I understood that at the end of the subscription, the Sky box stops allowing recordings. We watch most of our TV that way so we can avoid ads and get round the 'everything good on at 9pm' problem.

am I wrong?

KatharineClifton · 14/10/2015 14:26

You're not wrong. I invested in a Humax box after stopping Sky so we could continue with recordings.

specialsubject · 14/10/2015 14:30

oh well...back to the drawing board!

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