"Always going into your overdraft?"
A month doesn’t go by where you haven’t entered your overdraft at least once, or you’ve turned to your credit card in order to afford something. By overspending, you find yourself getting further into debt as time goes on.
Getting into debt occurs when our outgoings are larger than our income. Reducing your outgoings can often be easier said than done but there are a few simple steps you can take to avoid going into the red.
The first thing you can do is to check your statements regularly. Having a clear idea as to how much money you have left in your account should help you to understand how much you are able to spend.
If you have an account with NatWest, you can set up balance alerts, which will automatically send a text straight to your phone should your balance fall below a certain amount.
If you still find that you’re overspending, you may want to think about creating a budget. You can do so using our budgeting tool.
Firstly, deduct any priority payments, such as rent and bills, to work out how much disposable income you have left. From there, set yourself limits for the amount you can spend on items such as groceries or clothing to ensure you don’t overspend. You can treat yourself sometimes, but just ensure it’s within your budget.
Another tip to help you when budgeting is to consider making payments using cash instead of your card. You can withdraw a set amount each week and by having the money in front of you, it will help you to see when your funds are running low.
The budget calculator can help you work out how much you have leftover each month. You could use this towards a savings goal or paying off your debt.
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Debt Calculator Tool
Use the Debt Calculator to work out your total debt and the different ways you can pay it off.