Monday, 24 August 2015

Learning To Live Without An Overdraft

(this has been sitting as a draft for a few months now but I am posting it as it has been a good step on my road to getting my financial life in order)

My final debt vehicle is the £300.00 overdraft on my main current account. Currently I have this amount in my Emergency Fund, so technically I don't need my overdraft at all. But I have been hanging onto it and using it too. Which is why it needs to go - as I will stuff up my mortgage application. The mortgage bank will want to see three months of my bank statements and I don't want them to see my account in overdraft.
On Monday I will be sending my next payment towards my mortgage deposit fund and will clear the little bit of overdraft I currently am holding. Then in the last week of April I will be able to add about £500.00 to the Emergency Fund bring the total to £800.00. Surely I can get rid of my overdraft
My bank gives me an interest free overdraft up to £250.00 as standard so really I don't lose anything anyway. I need to get use to living 'cash' only.
I don't have any credit cards but I do have several debt cards and I do not want my debt cards to replace my credit cards. So cash only! 
People will think this crazy but credit is bad - it robs you of not only your future but also your self control and self esteem. Credit is debt and debt is slavery. 
I want to be in control of my money and not let my money do it's own thing. 

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