Category Archives: Money Management

How to Easily Repay Overdrafts

It can be stressful, if we have an overdraft, to think about how we are going to manage to repay it. However, there are ways that we can do it which are easy and therefore there should be no need to worry about it. You will need to be prepared to make some changes and perhaps work hard at it, but that doesn’t mean that it will be complicated.

Reduce Spending

To start with, it can be a good idea to think about whether you can reduce your spending. This is not something which comes easy to some people but it is actually not too difficult. Just think to yourself, every time you buy something, whether you really need it. If it is something that you can do without or delay buying then just do not buy it. If you do this with everything that you are buying then you could reduce what you are spending a lot. Often, we will buy things through habit or without really thinking about it and we may even wonder why we bought them or regret buying it and so if we think harder about purchases then we will avoid doing this. It is wise to also look at things we pay for by direct debit and standing order as it is much easier to forget about those. We might have magazine subscriptions, gym memberships and things like this that it could be worth considering whether to cancel or not.

Pay Less

It is even easier to make sure that we are not paying too much for what we are buying. It is a good idea to compare prices on the things that we buy so that we are sure that we are not paying more than necessary for them. We but lots of things and if we can pay less for most of them, we can spend far less money overall. A little reduction in spending here and there could add up to make a really big difference in the long term. So look at everything you are buying and see whether you can buy it from a cheaper place or if you can choose a cheaper brand. It need not be forever, but just until the overdraft is repaid. However, once you get into the habit of comparing prices, it can be a good habit to stick at as it means you will no longer be paying more than necessary for things.

Earn More

It can also be a good idea to think about whether you can earn more money. This might seem hard but there are actually lots of potential ways that we can earn more money. To start with think about your job and whether you might be able to try for a pay rise, promotion or do some extra hours to get more money. Think about whether you could take on another job as well to earn more. You might be able to find some online work or freelance work or the odd temp job. You might even be able to raise money by selling things you own and no longer need, monetising your hobby or renting out some space in your home. There are lots of things to try.

If you try all of these methods to raise some extra money, then you should have spare money to be able to repay the overdraft. It can be good to keep going with some of the things as well because that will enable you to be able to have more money all of the time and means that you are less likely to be in the situation where you will need to go overdrawn again.