Got a job!!! Now what is the best way to reduce my overdraft?

wee_den

Been unemployed for the last three months, and my insurance was just about to kick in and I have got a job! £10k less than what I was earning, but it is a job!

I now have a £4k overdraft and would love your advice on how would be the best way to get rid of it, loan or credit card?

Dont know enough about the credit card option so if anyone has done it before would appreciate your advice as I am currently paying around £60 a mouth in overdraft fees.


Thanks in advance for any advice given.

D :rotfl: (Happy cause I got a job)

Mr_Maximus

Don't go down the loan or credit card route unless you can get the credit card on an 0%. If you can keep switching it to the 0% ones if there are any left. Then put as much as you can toward paying off the amount.

That would be the way I would do it but others might post differently.

Mr Maximus

blackclouds

Well done you on getting a job ................. I have my signing on interview tomorrow, dreading it, never been to job centre always found some way to make ends meet in the 15 years I have been out of education. Right now any job will do me and I am sure you were the same

Horace

Blackclouds - I wish you well with your interview at the Jobcentre tomorrow, I know it must be dreadful but think of it as a way of getting back some of the tax that you have paid for years.

OP. please post your SOA so that we can see what you are spending and where you can save money to chuck at the overdraft: https://www.makesenseofccards.com/soacalc.html

Good luck on getting the job too.:D

wee_den

I had to be picky on the job as I had to earn a certain amount so not to loose the house, I am also a single parent with 2 kids (one a teenager and the other is 6, teenager just thinks I am her cashline!) but S1jobs and jobcentre plus was my websites every day, three times a day, but try to stay away from agency adverts as normally no job there (in my experience)

wee_den

loaner wrote: »

Put pay into bank account.

this is my only bank account so no option on that!

Horace

wee-den - how about opening a different bank account with a different bank that way your salary won't be eaten by the overdraft and you can then pay money towards it. I think First Direct are still paying people £100 when they open an account with them.

There are some 0% balance transfer cards about but you do have to pay a small fee up front these days - check out Martin's tips on the best cards.