TheYorkshireRose
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Not at all!! I work in a high street bank and believe me that is nothing!
Most people I deal with have overdrafts, mortgages, loans, credit cards etc. etc.
If you want to get rid of the debt, ask your bank to restructure the overdraft as a loan, then you can pay off a set amount each month to clear it in full over 2 or 3 years. £2500 over 3 years would be around £80 per month. |
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phooey
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Compared to some other peoples debt no it isn't a lot, but comparing it to other people isn't important.
Compare your debt to your income.
You get paid (how much?) and your still overdrawn - that is a problem!
Ideally your overdraft limit (you don't have to use all the limit) should be no more than half your monthly income so that when you get paid you do go back into credit.
Your overdraft will be considered "hardcore" by the bank, providing you stay within your limit the bank may not concerned in the short term.
You need to consolidate your overdraft and any cards into a single loan (repaid over at least five years to keep repayments down), cut the overdraft to half your income (£1000 salary = £500 overdraft at a maximum).
Talk to your bank about consolidating the debt and planning a budget cos your debt is TOO MUCH. |
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Charlene
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No but don't let it creep up further |
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Safety First
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It's all relative - if I'd run up this amount I wouldn't be too concerned as I know I would pay it all off the following month, so avoiding the incurrance of interest.
However if you can't pay it off in one fell swoop do some sums and work out how much interest (or dead money as I prefer to call it) you would be charged if you paid only the minimum.
My advice would be to bite the bullet and pay off as much as you can possibly afford each month.
Good luck!! |
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tattooedgray
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On the grand scale of things, your dept is small. The fact that it is your overdraft facility i imagine can be rather depressing because even when you get paid your still overdrawn.
have you thought about taking out a small loan to pay it off, that way you only need to pay back a small amount every month. shifting the debt I know, but you have sort of put yourself in a difficult situation!
hope the New Year looks brighter for you! |
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COOKIE
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Not compared to the £15k I once had - still got about £4k left to pay off!! |
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keith
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If you are still in the red after payday, and if it has been like that for some time and is not getting any better, then it is too much.
Overdrafts are usually one of the most expensive ways to go into debt. You would almost certainly be better off getting a loan at the cheapest interest rate you can find (NOT from Carol Vordermann!) and paying it off steadily at an amount you can afford (e.g. £100 a month over 2 years). |
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5yellowchips
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it is because overdrafts are expensive - transfer it all onto a 0% credit card |
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board-stupid
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Nah, that's not too much at all, but you do need to get a plan to sort it out. The best bet is to talk to your bank, they wioll probably organise you a personal loan, and clear your over draft, if you pay of that debt over 2 years it'll only be just over£100 per month, which is next to nothing - but you will need to take a look at your spending and work out how you got over drawn in the first place and make some changes so it doesn't happen again. You'll need to spend £100 less to cover the loan, and some more on top of that so you don't slip again
A few small changes can make a big differnce though, for instance I started binging lunch to work instead of buying it here and worked out I'm saving myself approx. £1500 per year!! |
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Jo_Diva
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Nope! That's low! I have about £6,000 debt and I'm only 24! I have a friend who is in about £15,000 debt, she is also 24, so I am thankful I'm not in her position! |
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Tony W
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There are people with more. It's more than most people's monthly wages. Maybe you should look into converting in into a personal loan over say 24 months and cancel the overdraft? |
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ricks
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what is considered to be high is completely relative to who you ask. To someone not working or not earning much 2,300 is a tremendous debt! But someone who earns 100k per year, it is not much at all, of course that also depends on their spending. If they make 100k & spend like the earn 120k, then they have a problem.
but, since you said that after you pay it & your expenses, you are still in the red, then you are in over your head & it is significant. |
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WikiJo
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How fast & dilligently are you paying it down? Are you reusing it (recycling it)? How much do you make per year & what's your discretionary income? What are the needs of your forseeable future? All these questions would need to be addressed. In general, whatever the debt, you can't really save much until you pay it off, else you are losing economic profit as well as accounting profit (loans cost more than savings accounts pay)
Pay it as soon as possible!
Good Luck!
;-) |
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Norm
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Yes |
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vicky s
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i dont think its a lot no. iv just graduated from uni and i have an overdraft of £2000 so now that im working i have started reducing my overdraft limit each time i get paid and gradually i will pay it back. that works for me but it may be worth while talking to a financial planner who could work out how you could cut back on the amount your spending. I wouldnt worry about it though. just dont let it get out of control. |
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dadn33
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I think it's a lot personally. Why don't you try reducing the overdraft monthly and getting it down. That way it's not cutting into your finances too much.
Alternatively, speak to your bank and see if they can advise a way to reduce it, so that you're not in the red every month. |
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alatoruk
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it is if you earn 23 pound a year, itts not if you earn 230,000 pound a year
you could do with reducing it if you are not hitting the black each month, sooner all later the bank will spot this and ask you to turn it into a loan. |
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bevflower
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Any amount of debt in this day and age is high. For ways of dealing with it and support i would suggest visiting a great website which costs you nothing - there are huge amounts of advice listed there and it certainly has some brilliant ideas to help you save money and pay off your debts. It has been a godsend to me and numerous people i know.
www.moneysavingexpert.com |
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Hushyanoize
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Because you added that you are still in the red...
... yes, you are in over your head.
Time to pay off the debt while moving in with the parents or inlaws. Have some fun with it and know it will be a short term solution to a bigger potential problem. |
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internat y
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it depends on your long time plan to pay it off.
no loan is too big if it can be paid off within 3 years |
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nemesis
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It depends on how much you earn per month.
In any case, what you need to do is compare your overdraft from one pay day to the next....
If your overdraft is getting bigger, then you've got a cashflow problem which you need to sort out. It means you're spending more than you're earning.
If the overdraft is getting smaller, then you're heading in the right direction. You might want to come up with a plan to clear the overdraft sooner. |
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Stumpy
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There are 2 types of debt...one you can manage and the other is the one you can't.
Personally if I were in your position I would get a loan with a low APR to cover the overdraft and then make monthly payments but at the same time reduce your overdraft limit to 0..... |
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lindsay
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No I'd consider you lucky!! lol |
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SteveT
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It's quite high because it's not secured. Many people have much larger loans on mortgages but they are secured against the freehold |
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GLYN D
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£2,300 is peanuts try £36,000 and still laughing |
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Charlie
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i wish i was only in £2,300 worth of debt!! i have a £5,000 loan!!! but i did buy a car with that money!!! i wouldn't panic about it, just work out a way to pay it off steadily each month!!! |
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Lisa P
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Not at all, hardly anything I wouldn't worry too much!! |
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vitalspark3
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Depends on your income. I've been in that situation and it's the pits. You feel like you're working for nothing cos every payday you end up worse off than the last one! I eventually had to get another part time job and it took me years to get debt-free and I try and pay for things in cash now. It feels good .. almost like I've kicked a drugs or drink habit! |
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seealittlelight
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Thats a very good question. How do you suppose one would determine if they carry a lage amount of debt, hmm?
Hint: It is determined by the amount of income one has coming in.
If you need to post on an internet Q and A site in order to get help arriving at this conclusion, I suspect that you will enjoy many years of debt, squalor and unhappiness. |
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doodlenatty
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It's never great to be in debt, but I've known people to be in far worse situations so I think you're doing ok! :o) |
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me me
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it is actually not a large amount, i think you need to watch your spending a little bit more carefully |
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