help STUDENT be debt free

pmdude

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?

youngandreckless

I think it depends on the interest rates. I would suspect your debenhams card has a fairly high interest rate, so if you can live with the negative number in your bank account (in can be a mental drain...) I say pay off everything and then get the overdraft paid off as soon as you can.
Obviously don't re-use your cards and cancel them once they're clear or you'll simply be in more debt in a few months time.
Good luck and fair play to you for getting on top of things while they're relatively manageable x

$17mma

pmdude wrote:

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?

If you are going to use your overdraft to pay off the outstanding debts only take what is needed..

going by the figures you gave you only need £716 so dont let your overdraft be more than that other wise it is too tempting to spend the rest of it. Also bear in mind that an overdraft can be removed at any time by the bank, or so I am led to believe.. remember the more you borrow the more you have to pay back so try and limit it.

mlayca

pmdude

I would go with the overdraft if it's 0%, although it may be a bit of a downer seeing your current account in the red, psychologically this may help you to cut back a bit until the debt has gone - I always find hitting plastic is easier and more guilt free than being overdrawn - but this makes plastic an easier tool to build debt up on!

Matt