clear my overdraft

How I did it: Budgeting, cutting back to essentials, use and reuse, mending. A second Job. And for the last little leg - student monies.

Lessons & tips: This might not be an option for all, but I took on a second job/extra shifts to supplement my income. A few hours extra a week can add up come the end of the month.

Make up a estimated budget sheet with all income and all outgoings, neatly itemised. I recommend excel for this. Next, alongside, for each month fill in the actual spendage and income - I was surprised how much it all adds up! It really makes you realise how much you spend on little things and how quickly things can add up.

Also (and this will take willpower) you need to figure out the difference between the things you need and the things that you just want. Do you really need that expensive moisturiser, or will the cheaper brand do? Do you even need a moisturiser at all?

Keep a spreadsheet of your overdraft balance, with any spending and any payments toward it, with a new total next to each addition. It’s a constant reference tool I used.

Put all loose change into a pot, and forget about it - you 'no longer have it'. I found that if I would need to buy lunch on the go, I would take out £10 from the atm, buy my sandwich, then keep the change in my purse, later spending it just because I had money on me. If you don’t have it there and then, you cannot spend it there and then. If you see something you like, the extra trip to the cash point will make you think about if you really need the prospective purchase. Be careful with cards though! ... At the end of the month, count in up, and bank it into the overdraft.

I have two accounts; the student account with the overdraft used for my student grants, and an account that my wages go into. The student account card I took out of my purse and put into a drawer. If I didn’t have real/actual money then I didn't spend it.

Online banking. Both my accounts were with the same bank, along with my credit card. This allowed me to be able to see all my accounts at the same time. This made making little payments into my overdraft, of extra cash left over from my wages, easier than traipsing to the bank to get out the extra £5 just to then pay in £5! Every little helps.

If you feel you can, ask your partner to watch your spending. WARNING: Make sure you won’t resent them for making you feel bad when they make you think twice about a silly/unnecessary purchase. You asked them to do it, so don’t make them feel bad! 

Finally, if you are a student like me, then look into any grants you can get. The above methods worked for the bulk of my debt, but the last little amount was cleared by my student grant.

Resources: Microsoft Excel. A second job. A pot. Willpower. A boyfriend. Student monies. Online banking. Two accounts.

Apr 20, 10:04AM PDT | 1 comment | 2 cheers