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  • FIRST POST
    • yoshiyella
    • By yoshiyella 11th Aug 17, 7:58 PM
    • 461Posts
    • 135Thanks
    yoshiyella
    What would you do?
    • #1
    • 11th Aug 17, 7:58 PM
    What would you do? 11th Aug 17 at 7:58 PM
    Hi All,

    I have an overdraft with RBS - I am currently £1400 in to the overdraft.

    I have a credit card with Aqua - credit limit is £1250 and I owe £1150.

    I have got a bonus of £1500 - which one would you pay off?

    Thanks for any advice and if you need to ask more questions please do ask
Page 1
    • binaryuniverse
    • By binaryuniverse 11th Aug 17, 8:14 PM
    • 411 Posts
    • 206 Thanks
    binaryuniverse
    • #2
    • 11th Aug 17, 8:14 PM
    • #2
    • 11th Aug 17, 8:14 PM
    The one that is costing the most in interest.
    • worried jim
    • By worried jim 11th Aug 17, 8:16 PM
    • 8,634 Posts
    • 13,158 Thanks
    worried jim
    • #3
    • 11th Aug 17, 8:16 PM
    • #3
    • 11th Aug 17, 8:16 PM
    Surely it's obvious? The most expensive.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • yoshiyella
    • By yoshiyella 11th Aug 17, 8:19 PM
    • 461 Posts
    • 135 Thanks
    yoshiyella
    • #4
    • 11th Aug 17, 8:19 PM
    • #4
    • 11th Aug 17, 8:19 PM
    They are costing me roughly the same.
    • binaryuniverse
    • By binaryuniverse 11th Aug 17, 8:27 PM
    • 411 Posts
    • 206 Thanks
    binaryuniverse
    • #5
    • 11th Aug 17, 8:27 PM
    • #5
    • 11th Aug 17, 8:27 PM
    Or, another avenue.

    Can you get a balance transfer card, and turn the Aqua card debt in to 0%?
    Or perhaps try a Nationwide Flexdirect account, which could give you 0% overdraft (for 12 months) to pay off the RBS one?

    If you can do either of these, I would then pay off the one that still costs.
    • Geoff1963
    • By Geoff1963 11th Aug 17, 11:10 PM
    • 1,057 Posts
    • 669 Thanks
    Geoff1963
    • #6
    • 11th Aug 17, 11:10 PM
    • #6
    • 11th Aug 17, 11:10 PM
    Is your monthly income at least several 100 ?
    Do you have a lot a payments each month which can be on a card ?
    Is the card 0 % if settled each month ?
    If the numbers work out :
    1. Pay off the card
    2. Next month, use the card for payments.
    Now you are paying the card at the end of each month, so hardly use the overdraft, and the card is 0 % APR.

    The two dangers are :
    If you pay off the card, the issuer might drop your limit
    An overdraft is repayable on demand
    • Thrugelmir
    • By Thrugelmir 12th Aug 17, 12:20 AM
    • 55,530 Posts
    • 48,880 Thanks
    Thrugelmir
    • #7
    • 12th Aug 17, 12:20 AM
    • #7
    • 12th Aug 17, 12:20 AM
    Overdraft first. Then the card.

    With the overdraft cleared learn to budget and use your money wisely. With the money saved from not having an overdraft. Start to pay down the card. Stop using the card and wean yourself off using credit.
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
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