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I want to sack my overdraft!
indigoviking
Posts: 4 Newbie
Hi everyone
looking for some sensible advice...have had a £1500 overdraft with HSBC for many years (all stems from being a student but that was nearly 10 years ago now!) and although I earn decent money I have found that I am nearly at the end of it at the end of every month. I am already cutting down on spending wherever possible, and have done things ike drawn up a budget and shifted my other £1300 debt to a 0% card which I am paying off gradually.
Basically I have 2 questions - is it cheaper to shift the £1500 to my 0% card and take it from there? (the overdraft currently costs me around £10 - £12 per month)
Also what is the chance that the bank will reclaim this facility? I have heard lots of stories where banks have suddenly withdrawn this facility.
Was going to set up a regular savings account but don't think there's much point while I have all this nonsense going on. Would really like to sort this out, your advice would be appreciated.
Ta!
looking for some sensible advice...have had a £1500 overdraft with HSBC for many years (all stems from being a student but that was nearly 10 years ago now!) and although I earn decent money I have found that I am nearly at the end of it at the end of every month. I am already cutting down on spending wherever possible, and have done things ike drawn up a budget and shifted my other £1300 debt to a 0% card which I am paying off gradually.
Basically I have 2 questions - is it cheaper to shift the £1500 to my 0% card and take it from there? (the overdraft currently costs me around £10 - £12 per month)
Also what is the chance that the bank will reclaim this facility? I have heard lots of stories where banks have suddenly withdrawn this facility.
Was going to set up a regular savings account but don't think there's much point while I have all this nonsense going on. Would really like to sort this out, your advice would be appreciated.
Ta!
0
Comments
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If you get a 0% purchases card you could put all your normal day to day spending on that and when your next wages hits your account it will make a nice big dent in the o/d, which in turn will mean the bank charging you less interest.
It is good that you have drawn up a budget - do you have the capacity now to really drive down your total debt (as opposed to just shifting it around?).0 -
thanks that's a good idea...my partner was off work for 6 months and part of the problem has been that I have been paying more out than usual due to that...now that they are back in work we have drawn up a budget together and agreed contributions etc...so there is capacity to drive down the debt although not by a massive amount each month. Although, I have to admit the overdraft has been too easy to use and when I have asked the bank about it they just said not to worry...i suppose I have been a nice little earner for them! thanks again I will certainly consider your suggestion (and any others are of course welcome!):D0
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