Urgent Help required regarding savings and debts

quiche4

Hi All

I am having a bit of a dillema. I woke up this morning to a water bill for over £100 which requires immediate payment.

Im already £850 into my £1500 overdraft and only got paid on 25th Oct. It seems that now im into my overdraft by that much that it makes it more and more difficult to get out of it.

I have got an ISA which has £400 in it. I am no longer paying into this ISA.

My question is Do I put the money from the ISA into my current account to clear some of the overdraft? or do I leave it where it is?

Please help asap.

Lorraine

Burlesque_Babe

what is the interest on your ISA paying? If it is less than the interest being charged on your overdraft, then yes, use it to clear some of your overdraft.

How overdue is the water bill? How about a letter asking to split it into monthly instalments between now and the end of the financial year?

slig

Yes. Unless your overdraft is interest free, there is no point in saving money in your ISA.

quiche4

Hi ya

Yeah the interest on my ISA is less than my overdraft. I am in one of the bank accounts which i pay a monthly fee for. I get £500 overdraft no interest and £1000 at 10% charge. Is this a good thing or should I come out of that?

My water bill cover from 24th Sept 2007 till 10th August 2008. I will be querying it as when i first moved in a desperately tried to get them to set up an account. They said they couldn't because its being paid by my service charge (im in a flat). I also got ofwat involved at the time.

Thank u
Lorraine

Burlesque_Babe

definitely move the money over, if you are paying 10% and are overdrawn then you are paying out more than your ISA is bringing in.

quiche4

Well guys

I have bitten the bullet and trf it over to my current account. I am now £404 overdrawn.

Thank u all
Lorraine

Burlesque_Babe

good move - you're saving money by not being charged