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Credit card v loan to clear overdraft

Need a bit of advice please I have approx 700 overdraft with barclays and 1500 with halifax - how can I best clear this? As I am paying more interest than I actually use the card for!!!

I have never had a credit card in my life and am a bit scared of them to be honest, would this be a better option than a loan do you think?

Thanks

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    what are the APRs of the OD's
    how much can you afford to pay back each month
    do you have any other debts
    do you have any savings
  • neither.

    I've managed to clear a £3K overdraft by following some simple rules.

    1. Work out what the difference is between your income and dds.

    2. Work out how much you can comfortable afford to repay each month towards clearing your o/d.

    3. To the figure in (2) add the monthly bank charges.

    4. withdraw a sum of money that is equivalent to (1) less the figure reached in (3).

    5. Only use the sum withdrawn for expenditure - do not touch the bank account .


    That way you will eventually clear the o/d

    Also look to reclaim your bank charges .....and use this to clear your o/d!
    2014 Target;
    To overpay CC by £1,000.
    Overpayment to date : £310

    2nd Purse Challenge:
    £15.88 saved to date
  • sammiboo
    sammiboo Posts: 1,110 Forumite
    i have cleared my barclay card and overdraft yesterday with a 0% credit card for 13 months. In this time i can clear the lot before the free interest runs out. then i can ditch the card.

    The card would only be a good idea if you can trust your self not to pile more debt on top of it.
    March 2006 £15,200+ in debt April £843.64 in debt - Debt Free date Sept 2009
    Egg Credit Card - £843.64 5.7%
  • BigAde
    BigAde Posts: 439 Forumite
    sammiboo - Which credit card did you use?
    I need to pay off my overdraft with a 0% card (6 months or better), but not sure which credit-cards allow you to do this.
    Thanks.
    Ah! Good old trusty beer... I hope you never change.
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