Need a little help re: overdraughts

Legacy_user

Hi peeps,

As you know im aiming to get debt free asap (arent we all !) but I think now that I have my accounts under control and a little bit saved, its time to look at the overdraught.

Now this overdraught is from the old student days and never seemed to go away. At the moment I have a standard Barclays Additions account with a £2400 overdraught. The charges levied are usually £9.45 interest and £9.50 account fee. The account at the end of the month, is usually only in credit by £50 - £ 75 and to be frank the thought of all the hassle and potential for screwups in transferring accounts is daunting.

Now I did open a Co-op cashminder card but this really doesnt suit me as I have no branch near me so not only do I have issues popping the cash/cheques in to the account but also I just dont like the online banking, so no money has ever really gone into this account.

I was thinking what Id really like to be able to do is get the £2400 into an interest free account and then take money every month and pay it off. It wont all be paid off within a year as I do not have £200 to throw at it.

I have read Martins articale but I need to be able to do online banking but how can I pay cash/cheques in when there is no branch near me ?

Any thoughts would be useful

Xbigman

You are payong over £200 a year charges on that account. Which is around 9%. It needs to go. The best way to do that is to budget and set yourself a target each month to use less and less overdraft. Especially if you are happy with your current banks service.
You say you have small savings? You should put those savings into your overdrawn account and clear it more quickly, unless you are earning over 9% on them.
Regards



X

the*dark*one

How long ago was it since you were a student/your account was a student account?

System

Student account was opened over 9 years ago

the*dark*one

Ah, ok then scratch that theory lol.

You can pay cheques/cash in through the post to your bank or at a Post Office (depending on which bank you are with).

MORPH3US

Alliance and Leicester are doing a interest free £2500 overdraft for a year. If you can get one then you could use that to pay off your fee incurring OD and then you have a year of no fees to get it paid off.

You do have to pay £500 a month into the A&L account though, but I would hope you have at least that coming in or you won't get a £2500 overdraft from them anyway!

M

tomstickland

You'd be better off moving accounts. What's the standard overdraft rate on a standard Barclays account? If it's less than 9% then you'd be better of using that. The Addittions account is a fee based acccount that offers virtually no benefits. Well, that's what I thought when they tried to give me one.

You say that you have a little bit saved. There's no point in saving if you're paying circa 9% on a debt.

ard123en

out of interest why do you not want on-line banking ?