If you have read the review of my financal life so far you’ll know I really want to pay off this Overdraft.
The problem with overdrafts is the money is always available to spend and when you have cash available you go and splurge it on frivolous things. In the past we have managed to halve this overdraft only to go and overspend again and end up back at square one.
So here is my plan to pay this off.
Cut off the source of funds!
This account is my wifes current account and the overdraft is her student account. The interest is about £30/m and our discipline is not good enough to not dip into it to fund fun things.
In the same way I have forced discipline in the realm of eating habbits by not having biscuits in the house the only real way I can see this overdraft being cleared is by her opening a new account and not using this one any more.
We’ll keep the overdraft as an emergency fund but that is all.
I am also going to ring the bank to negotiate the interest rate and see if we can blag anything through that.
Finally I will be paying £200/m into the account over the next 6 months plus any additonal hustle money I can muster which should enable us to clear it pretty swfitly.
To clear this in 6 months I will need to hustle an additinal £900 or £150/m.
I’ll this page monthly with my progress.