Help student clear DEBTS

pmdude

Help student clear DEBTS
I have £216 to clear on my Debenhams Card and £200 to clear from my MasterCard. I am also £300 overdrawn on my Natwest Current Account (my limit is £400)
I have opened a student account with the Royal Bank of Scotland, with an interest free overdraft facility of £1500. Should I use this money to pay off my debts?

black-saturn

You might be better posting on the debt free wanabee board as they are more clued up about things like this.

N9eav

How about working? My 16 yr old at school earned £180 during half term week at Sainsbury.

Magentasue

Initial thought is yes - always get rid of high APR debts where you can.

But - you have built up these debts and will do the same again if you don't change something.

You need to work out a budget - work out your income from all sources.

Then list all your outgoings - cut them as much as you can. Whatever is left, pay off your overdraft with. You want to be reducing youroverdraft, not increasing it. Don't feel that £1500 is yours - it's interest free now but one day willhave to be paid back. It won't be 0% forever.

If you are spending more than you have coiming in, you have two options. Reduce your spending or increase your earnings.

lee__48

Of course you should transfer your debt. Why should you pay up to 30% interest when you don't need to!?

Lee

Karnam

Transfer the debt and do it now. Interest free debt VS interest debt?!? it's not hard!

houndour

I would transfer the debt onto the interest free overdraft but don't fall into the trap like my friends and boyfriend did. They got loans to pay off credit card debts and then built up the credit cards getting into more trouble.

Clear the debts on your store cards and CUT THEM UP.

Then you need to work out a budget and perhaps get a job to help pay for your lifestyle so you can clear the interest free overdraft...because I doubt it'll be interest free forever.

Robert_Sterling_3

Transferring the debts to one account at 0% interest is a good move.
Clearing the other existing loans is a good move.
On the other hand you are only reducing your interest charges you are not clearing your debts.

The method of clearing debts usually involves either earning more or spending less or both.

I appreciate that this is not always possible for students.

Josie_Jump_3

Transfer your debts to the 0% overdraft but then talk to your bank and get the overdraft limit reduced to £716 (the amount of your debt), this way you won't be able to do anymore spending on your overdraft and get into greater debt. Of course as a previous poster said make sure you cut up all those cards.

Good luck

mountainofdebt

CANCEL them !!!