we have an overdraft facility of £1400. It doesn't usually get up to that, BUT!! we can never seem to get in credit. We are quite careful with our money (now) but don't want to get a loan to pay it off. Any ideas anyone??!!

Reduce the overdraft limit by a small amount each month - say £50 or £100. It will soon be at a manageable level.

have you thought of a 0% credit card - pay petrol/food with it - reduce your overdraft and then pay off card before 0% ends (or tranfer to another 0%)

I'd go with the reducing option, credit cards are eviiiil.

quote:

Originally posted by MrsDiddy:
I'd go with the reducing option, credit cards are eviiiil.

Credit cards are only evil if you have no discipline. If you really have got into the habit of being careful with your money and won't be tempted to splurge if you get a card then I'd agree with Sunny and take advantage of borrowing money for free on a 0% card, allowing you to pay off your overdraft which will be incurring high interest. Have a look at your bank statement to find out how much per month you are paying in interest and that's all extra money that could go towards paying off your debt if you transfer it to a 0% card.

I'd also suggest - if possible - a part-time evening job say in a bar or restaurant for one or two evenings per week. It can be lots of fun if you get the right job (and like meeting people) and the extra cash'll help you pay off your debt that bit quicker!

Good luck!!

agree with Toasti - managed to get out of debt using the 0% cards - i now have no overdraft - last month i owed nothing - then got a new kitchen on o% card for 12 months - as long as i pay about £150 a month on card (and don't spend on it)i get a free loan
you do have to be careful how you use credit cards

Yes but I would say that if you've got yourself into overdraft situation that you can't quite get out of, then credit cards are probably not the best for you.

I know what you mean, £100 over here and there and before you know it you never seem to get in credit, save for when your salary goes in.

Mine's now gone as I was basically just using it as extra cash, but of course there comes a point when it's no longer feasible to spend any more. You overspend by £100 for a couple of months, you then have to underspend by a couple of hundred to get back to black.

I have just been very careful with my outgoings. I know that I waste money on things that aren't necessary.

I've found for me the one, single thing that has reduced my outgoings (and I aint giving up the fags and wine, that's my choice) is eating soup on a regular basis, with a crusty roll for my tea. I was spending too much on ready meals and convenience foods without even realising it.

[QUOTE]Originally posted by queenstomper:
Yes but I would say that if you've got yourself into overdraft situation that you can't quite get out of, then credit cards are probably not the best for you.
QUOTE]

Thats where I was trying to come from.

quote:

Originally posted by MrsDiddy:
[QUOTE]Originally posted by queenstomper:
Yes but I would say that if you've got yourself into overdraft situation that you can't quite get out of, then credit cards are probably not the best for you.
QUOTE]

Thats where I was trying to come from.

PG says she's careful now - hopefully meaning a lesson has been learned. I would never advocate credit cards for credit card's sake, but I'm v sensible with money and have used 0% cards to my advantage - but more importantly to the detriment of the banks!!

I have always refused to have a Credit card.

If I don't have the money to buy something there and then, it can wait til the next pay day.

Change Bank Account ASAP

Then put around £100 pound in a month to pay it off

Probably can't be done. If the first bank sees no salary being paid in to an overdrawn account they could demand the overdraft be cleared within a week.

Put it on a small loan, short term, say 12 months, and let the loan company reduce your debt for you. A structured repayment programme like a loan is the most effective way of ensuring the debt is cleared off within a set period of time. Don't be put off by high interest rates, the rates will be high as the Banks will not make any profit on such a small loan. Look at how much the interest will actually cost, I would say on average a £100 for a 1 year loan. And as long as you meet your payments, the loan will be guaranteed to be gone after 12 months.

C'mon PG, have you paid it off yet?? Or at least making inroads?