Vicious overdraft loop

[Loopylind]

Any advice on how to get out of an overdraft loop? Continually in overdraft a few days after pay! Can’t seem to get free of it!

I’m cutting down but only see a bottomless pit of despair!

I'd love to know too, especially before I go on maternity leave and my pay drops.

I guess setting a target of dropping say £50-£100 every month will gradually help?

Aim for a little reduction of it each month and keep a log. Even if it's just by a tenner a month or whatever you can afford. Takes forever but you'll get out of it eventually - I was in mine for years!! But now I'm out I always stay out of my overdraft and finally even have some savings.

Have you drawn up a monthly budget?

What do you spend your money on?

I've had a £1000 overdraft since I was a student 10 years ago. Because I went to the limit as a student evertime I get paid it clears it but I obviously then need the money I've been paid to live. It's only the past few months I've actually had enough slack in my budget to reduce it by £100 a time. Be warned though; banks love you having an overdraft and reducing mine has been an uphill slog with long phonecalls and transfers to different departments every time.

Thanks for the advance. I suppose trying to chip away at the foot of the mountain rather than look up at it’s dizzy heights will help.

Nice to know there’s people out there.

*advice lol

I’ve drawn up a budget, sort of but most of my wages goes on normal stuff - bills food. Just feels like no light at end of tunnel. My main problem is train fares to work which is a no win situation!!!

Open another bank account without an overdraft facility, change your wages and direct debits to that account and pay a certain amount off the OD every month.

People have cleared massive debts so there is hope. You need to stop

Adult clothes
Christmas presents
Birthday presents
Magazines, books ( use library), takeaways, cosmetics, toiletries until none left
Paid subscriptions
Food waste - none allowed

Hammer down all bills with comparison - energy is up 30% this year and 60% if you aren't on a fix.

BarbaraOcumbungles

That's actually a really good idea. I might do that then close the account once the overdraft is paid off. Also means I can forgo the monthly wind up with the bank to reduce it.

BarbaraOcumbungles thank you

Blimey, so simple but genius.

However overdraft charges???

Be careful about opening a second account. Your bank can withdraw your overdraft if you no longer have a salary paid in. You can ask your bank to reduce your overdraft by a set amount each month. It really helps

Kannet

Oh OK. Silly question, but you just go in and ask them?

Oh I get you reduce the overdraft amount each month!

Chip away at both ends so to speak

Yes. It used to be my job. Just arrange an account review and discuss it with them. I used to suggested people dropped it by approx 50 a month. It’s normally a manageable amount, it chips away at it slowly over time.

Where did you work Kannet? My bank appear to be making it as difficult as possible to reduce mine.

It was years ago but it was Lloyd’s tsb. It’s really worth going in to see someone face to face.