Living in your overdraft? We can help
“I’ve really struggled with my money this year, and have already spent too much on Christmas. I also recently got caught out by a free trial on an app that rolled into a paid subscription. Even without this though, it feels like every month I end up in my overdraft. How can I keep track of my spending better?”
Lots of people will be feeling this way right now, and it can be difficult to stay on top of things like online subscriptions. But there are steps you can take to be more in control of your money.
Firstly, draw up a budget
Remember to include all of your general spending, and any other bills you have to pay. Be realistic about what you’ll need for essentials like food and travel. If your income fluctuates, use bank statements, benefit award letters and Universal Credit journals to plan your budget each month.
The Citizens Advice website has information and guidance on creating a budget planner.
Your bank should be able to tell you what regular payments you have
If you find subscriptions you don’t want, contact the company in question to cancel them. In future, before signing up to anything, make sure you know what you’ll get, for how long and what it’ll cost. If you do use any free trials, set a reminder a week before the free period ends so you’ve time to cancel it if you want to. Keep evidence of any subscription cancellations in case you need it in the future.
If you’ve been relying on your overdraft a lot this year, or turned to credit cards or Buy-Now Pay-Later, it’s understandable if this worries you.
Always prioritise paying your rent, mortgage, energy bills and Council Tax first, because not paying these has the most serious consequences. Speak to your bank or building society and ask them to help you work out how to pay back an overdraft - for example, they might agree to temporarily pause interest or fees. If you take out a loan to pay off your overdraft it could cost you more and cause problems if you can’t afford the payments. Click here for more advice for if you’re struggling with your overdraft.
If you’re having trouble managing your debts and paying bills, this Citizens Advice page has information on how to tackle each type of bill and how you can get support.
Our website also has a benefit checker where you can see if you’re getting all you’re entitled to, such as benefits or government grants. Everyone’s circumstances are different, particularly when it comes to managing personal finances.
We’re here to help you find a way forward, so please get in touch if you need support.
Call our Debt helpline
9am to 8pm Monday to Friday, 9:30am to 1pm Saturday
0800 240 4420
