Please help me.. I'm in a vicious circle!

[FeedMyFaceWithJaffaCakes]

Hello.
I seem to have got myself in a bit of a pickle with my money.
I work full time earning roughly £1500 a month. I put £700 in our joint account to cover my part of mortgage bills including food also budgeted in that is £40 a week for us to go out etc. With the rest I pay for my car £160 a month, phone bill about £60, petrol about £80, cat insurance £15 and anything else I want.
I can't remember the last time I saved anything because I just seem to be fire fighting with my debt... The worse thing is I'm not even sure where all my money goes!
This month I'm £600 in my overdraft and £300 in my credit card so I'll be back in the same situation where I've paid my £700, and I'll be in my overdraft to do my car and everything else! I just do not know what to do anymore!

A housemate I used to live with used to take out £100 from a cash machine and leave her credit and debit card at home. She was fabulous with money.

You could look at opening up a new bank account and moving away from your overdraft.

You won't be able to use the current account switching service (as that tends to move the OD with you) but it wouldn't be too difficult.

Basically:

• Open a new account (basic account, no bells and whistles) away from anyone you have debt with

• Get your income and DDs transferred to your new account

• Treat the OD the same as your credit card and make a payment towards it each month

It is MUCH easier to manage paying off an overdraft when you're not using it as your main bank account.

Alternatively - could you look at shifting your OD and credit card onto a different CC with 0% interest? That way you've just the one debt to focus on clearing.

And re running out of money... You absolutely need to put a budget together and live within your means. Then you won't run out of money.

If you're in a situation where you're just buying things as you want them then that's why you'll run out of money. If you make a proper budget, factor in every little thing you'd ever need to buy, and stick to it, you'll be fine.

Have you got anything unwanted or not used you can eBay or gumtree to increase cash flow in the short term?

Was thinking about getting rid of it all together and chopping my overdraft... But then what happens when I run out of money?

Surely I won't be able to open a new account with all my debt?

Once you sort your finances out, and start tracking where it's going, you won't run out of money, because from doing this you will be able to budget.
Is £300 the minimum payment you need to make or a number you are paying to reduce it? Either way, to pay it off quicker look at a no interest transfer. Lots do 6 months deals as a minimum. So potentially you could have it paid off in 6 months.

Apply to a different bank for an account without an overdraft. They will either say yes or no. Then get everything sent over to that account.

Talk to existing bank about a payment plan to pay off the overdraft.

Then to manage your money, set aside your bill money. Divide everything that's left by 5. That is the amount you have to spend a month.

As your credit card and overdraft are paid off, then this will increase. You should easily be able to manage of this amount as you have already factored in bills and food. Just means if you cannot buy 20 costa's a week, then you won't be able to unless you earn enough to fund this.

I don't buy 20 costas a week.
Maybe 2 or 3.
To say 20 is rude and not true.
I don't know about the 300 pounds question, my online banking just says -300

there are banks that do "basic bank accounts" co-op is usually pretty good. they don't credit check, so doesn't matter re. debts. they don't have an overdraft with them. This is what I would do:

Payday-pay £700 to joint, minimum amount to credit card, £350 to direct debits, £100 to new bank account.(so will be £450 overdrawn)
Of the £100, take out £25 on the same day every week. After that LEAVE YOUR CARDS AT HOME :) the £25 HAS to last the week. You still have your £40 going out money so don't see what else you need money for?
keep doing this until OD is zero, then divert all your spare cash to the credit card.
your bank can actually re-call the oD at any time, so get rid asap
how much is your total on the credit card? is it only £300 ?
good luck

I think the 29 Costas was a joke , lighten up op

20! Not 29 that's just greedy

Have a look at this OP - more info on basic bank accounts www.moneysavingexpert.com/banking/basic-bank-accounts

Also this - fill it out and be completely honest. It will help you on the right track www.moneysavingexpert.com/banking/Budget-planning#free

Yes the 20 was a joke!
So your paying the full amount of your credit card every month?

Don't use your debit or credit cards

Go and physically withdraw the money from the bank.

Keep every single receipt in your purse for every penny you spend from 1 August till 31august, no need to write it all down

Just add it up each week and look at the receipts then you will know what you are spending and on what.

I don't think it's a good idea to introduce someone with debts and a shopping addiction to gambling. Never mind that the only way its guaranteed to make 500+ a month is to spend money, which the op doesn't have.

Please don't tell me to "lighten up" when I don't know how- see further down the thread. If you won't respect me then go away.
Thank you so much for all this information.
Have had a long chat to my DP tonight about it, we have dig a notebook out for me to start writing everything down and I will apply for a co-op bank account tomorrow.

How much do you earn relative to your DH?

You say you both pay the same amount to joint bills. Do you both earn the same?

Could you keep an Excel spreadsheet of everything you spend? It really helps to keep track of everything and spot trends on your spending. It will make you feel much more in control.

I write everything I spend in a little book which I carry with me, then put it into a spreadsheet. I always know exactly what bills are coming up and exactly where I am with my finances. It's enabled me to save quite a bit of money over the years.

To help get on top of things, it might help to try to live on the stuff you have in the freezer as much as possible and keep fresh food shopping to a minimum - when you have eaten all the freezer stock you can do a proper thorough defrost and then can start building up stocks again once your spending is under control.

Pp advice about not spending on card is good. Only take out £20 cash at a time and see how many days you can make it last.

No point having a buffer in the joint account if you are struggling in your sole account. Could you ask the bank to reduce your overdraft by £50 each month so that it gradually gets smaller? Stop using your credit card. What have you bought this month to add up to £900 on your overdraft plus credit card?

Does your dp earn the same as you and do you pay the same to the joint account or is it proportional to how much you earn?