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    Overdraft Debt Help Needed

    I currently have an overdraft of 2500 which is always maxed out every month. I have no savings or credit card debts, just the overdraft. interest is 30 p/m. I am accounting for every penny spent, but i am left with around 200 to last the month, which has to pay for food etc.

    Any advice you have will be greatly appreciated. I have looked at loans, credit cards to pay off this debt, but they all seem to have such high rates of interest that inevitably would put me more into debt.

    I dont really see a second job being of any good, as i would have no time to myself as i already work full time, although the extra money would come in handy, its just not plausable! i have stressed and stressed over this, and spoken with family members and friends.

    My sister has been a great help, i did have an overdraft limit of 3000 but she convinced me to reduce it to 2500, so i now i have to watch what i spend, and she was the one who came up with the plan to write down everything that im spending each month, but still i cant seem to get out of it.

    It's not getting any worse each month which is a good thing, but its not getting any better either which worries me. Please help me if you can, thank you

    #2
    Can you cut anything more out of your budget to reduce expenses?

    Can you get an extra job to make up for the deficit?

    These are just a few things that I have done to make up the difference between what I have and what I need. (Oh yea- get good at separating wants from needs, and focus on the needs first, such as food, clothing,shelter issues).

    Comment


      #3
      There are only 2 possible solutions to a spending deficit.

      1. Cut spending.

      2. Increase income.

      The prospect of a 2nd job may not appeal to you because it would cut into your free time, but unless you can slash spending to less than your current income, you have no other choice.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

      Comment


        #4
        Originally posted by questions View Post

        My sister has been a great help, i did have an overdraft limit of 3000 but she convinced me to reduce it to 2500, so i now i have to watch what i spend, and she was the one who came up with the plan to write down everything that im spending each month, but still i cant seem to get out of it.

        It's not getting any worse each month which is a good thing, but its not getting any better either which worries me. Please help me if you can, thank you
        Well, it sounds like you have the basic tool to start a budget,so the only way anyone can help you is if you show your budget.

        If you're in the process of typing it out, and go "aw man, I don't want to post this because they'll all just say it's excessive" that's your own brain telling you the diference between a want and a need. Heed it's advice.

        If that doesn't happen, and you don't know what to cut, post it anyway and maybe someone here can give you some alternatives to save cash.

        Comment


          #5
          Cut out all things you can. I mean everything. Drop the cable/dish. drop the internet, no soda (pop), coffee or juice--drink water, walk or bike when you can avoid driving, limit yourself to only 1 lightbulb on at a time. Go bare bones.
          Then, get a 2nd job--even temps--babysit, walk a dog, rake or mow...

          It may take 4-5 months, but turn it around and 0 it out.

          THEN keep up the barebones lifestyle until you have that amount in savings. Then, ease up a little but keep adding to the savings.
          You CAN do it.

          Comment


            #6
            It sounds like you have a very good, kind & helpful resource in your sister. I'd talk to her again and ask "what's the next step?" Take her advice as a form of love, not criticism. When you get things turned around, buy her a nice bouquet of flowers or something.

            Good luck!

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