Please help me :(

grumbler

Bendybops19 wrote:

I was thinking that i could get a credit card to cover the overdraft, then live on my salary and pay back the credit card monthly. Hopefully, this would be paid off within the 9 months. How does that sound? I will sort out my spending habits within that time too. I know i have over spent this christmas, by quite a bit.

This sounds good, buy this is not that easy. You cannot just pay off your overdraft with your credit card. The best strategy is to 'move' as much as possible of your spending to the CC and use 'saved' money to pay off the overdraft.

grumbler

Bendybops19 wrote:

grumbler - do u mean that i wont be able to pay more than 3% of my balance each month? I wont be able to choose how much i want to pay back?

You can always pay more. You cannot pay less than minimum payment. However, during first 9 months there is no point in paying more than 3%.

P.S. With DD debit you can usually chose only between minimum and full payment. However, if you make minimum payments by DD you can always make extra payments.

KTF

Bendybops19 wrote:

grumbler - do u mean that i wont be able to pay more than 3% of my balance each month? I wont be able to choose how much i want to pay back?

Edit: Beaten.

Bendybops19

KTF wrote:

Edit: Beaten.

Beaten?

Bendybops19

Ok grumbler, so i will get the 0% CC, and then just start using that for my normal spending (which will be cut down!!) so that what i earn will start to cover the over draft. Once thats back upto normal, should i pay the rest of the CC off.

Starting to feel a little more optimistic

KTF

Bendybops19 wrote:

Beaten?

I replied with the same information as Grumbler so rather than have the same post twice I edited mine.

KTF

Bendybops19 wrote:

Ok grumbler, so i will get the 0% CC, and then just start using that for my normal spending (which will be cut down!!) so that what i earn will start to cover the over draft. Once thats back upto normal, should i pay the rest of the CC off.

Starting to feel a little more optimistic

Is the Overdraft free or are you paying for it? If you are paying for it then I would be tempted to put that on the card (if you can) and save the interest charges.

Then you can push any left over money each month over to the card to clear it down.

grumbler

KTF wrote:

... I would be tempted to put that on the card (if you can) and save the interest charges.

You cannot do this because HSBC card does not have introductory 0% rate on cash advances and charge extra 2% on them.

Bendybops19 wrote:

Ok grumbler, so i will get the 0% CC, and then just start using that for my normal spending (which will be cut down!!) so that what i earn will start to cover the over draft. Once thats back upto normal, should i pay the rest of the CC off.

You can wait untill the end of 9 months (be carfull not to miss this date!) if you can resist temptation to spend money. You can earn some interest of this money while keeping it on a saving account.

nmiah786

Apply for an Egg Card and if you get that you can transfer you overdraft to it and pay no interest for a while (6 months)

Bendybops19

Are egg quite good? Would you suggest hsbc 0% for 9 months, or Egg 0% for 6 months? Which is easier to use (eg, for the postage and customer service)