Overdrafts

saoirse_2

Hi there,
Happy new year to everyone. I'm determined to make 2006 the year that I sort out my up to now abysmal :eek: attitudes to money. I've bought the money diet book and am trying to stick to a budget so that I will be able to live within my means.
Anyway, this is all new to me and I would be grateful if I could have some help with paying off my overdraft or at least moving it to cheaper credit. Its about £2500 with first direct and costs me about £30 a month in interest. Thanks heavens its my only debt but I need to get a handle on it and be more money savvy in future. I was refused a credit card recently- havent had one for years but applied for a Ryan Air one (someone approached me at stansted offering free flights if I took one out) Does being refused mean that I am on a blacklist somewhere ?

Thanks to everyone who posts here- its fantastic that I can ask for help in this way!! :T

Saoirse

grumbler

saoirse wrote:

...Does being refused mean that I am on a blacklist somewhere ?...

No. Such a thing a a blacklist doesn't exist: Your Credit Rating: How they decide and how you find out for free, http://www.stoozing.com/credscore.htm

I think you will get further advice here, but you can start with reading these articles:
Stop paying any overdraft interest
Personal Loans: how to get the UK's cheapest

freebie_junkie

my fella graduated from uni with an overdraft as teh second he stopped being a student they started charging him. he went into to see his manager and negaotiated interest-free in exchange for a monthy debit taken from his other account when he gets paid- would this help? have you tried negotiating with your bank?

freebie_junkie

p.s. good luck

saoirse_2

Thank you grumbler and freebie junkie. :T
You've given me so much to learn and digest. I've spent the past few hours looking through the links and my head is spinning!

I think that the best route for me is to find out my credit score from the agencies mentioned and then to apply for a super balance transfer to a 0% credit card. Or should I apply anyway?- if I am refused again does this count against me (seem to remember this from somewhere- probably martins book)

Many thanks again for your advice,
Saoirse

grumbler

saoirse wrote:

...if I am refused again does this count against me ...

It doesn't matter if you are refused or not. This information is not available to other lenders. What counts is a credit search related to every credit application. A lot of searches (I think more than 3) during a short period of time count agains you.

Time applications correctly. Many credit searches, (the note left on your file when you apply), in a short space of time hurts your credit score. Space out applications, not just for credit but for car insurance, mobile phones and others, as all can leave searches on your file

(Your Credit Rating: How they decide and how you find out for free)

Annie_Fanny

Saoirse

I'm doing the same thing as you and whittling down my overdraft - fortunately I have a 0% graduate account thank goodness. Do you know what the APR is on your overdraft?

There are plenty of other options available to you then doing a balance transfer to a 0% credit card. Have you looked into the Alliance and Leicester account? It is probably worth giving them a ring to see what they can offer you - this won't require a credit check either - well not initially anyway unless you decide to apply! Applying for a credit card and if accepted can take quite a long time for the actual card to come through.

Also to give you some hope I was refused for a Halifax credit card but was accepted for a Sainsbury one....

Have you considered posting up a Statement of Affairs up here as well so that us MSEs can suggest ways to cut back?

Below is a rough template, (as copied from Southern Scousers post);

Monthly Incomings:

My salary - £1,300
Partners salary - £800
Benefits - £100

Total - £2,200

Monthly Outgoings:

Mortgage/Rent - £700
Gas - £20
Electric - £20.53
TV License - £10
Phone - £40.79
Food - £300
Car Insurance - £32.53

Total: £1,123.85

You get the picture. Also give us as much detail about your debts as you can especially with the APR’s. If you don’t know them, phone the companies up and get them to tell you.

Egg CC – Balance £2,300 (limit £2,500) APR 12.9%

Tesco Loan – Balance £5,000 APR 8.9% Length of term 60 months, 12 months to go

Overdraft - £800 (limit £1,000) APR 20%


Good luck!

Annie

saoirse_2

Hi Annie,
You're doing so well with your overdraft- well done!
I'm in the process of doing the budget in Martins book and will post a statement on here soon. I do know that Im living beyond my means at the moment (on the overdraft actually) and am in the process of deciding how to cut my expenditure (Have to prepare for college and work tomorrow, just now, so have no time.) I'm ashamed to say I have no idea of how much interest First direct are charging me- all part of my ostrich style of money management! I will find out and will post again in the next few days with all the info. I'm determined to do get clear of this debt.
Thanks to you and grumbler for your kindness
S

grumbler

saoirse wrote:

...I have no idea of how much interest First direct are charging me- all part of my ostrich style of money management! I will find out ...

http://www.firstdirect.com/bankaccount/in_detail.shtml:
10.9% AER interest on all agreed overdrafts
Unauthorised overdraft interest rate 19.9%

loubie_lou

I'm glad i found this post......Someone on the card forum told me that you could not do a balance transfer from an over draft to a credit card, i'm glad there is a way now cos I have £4000 worth of over draft! I'm thinking of doing a 0% for the life of the balance I think and Martin has recommended the Amex one. Anybody know what their credit scoring policy is like...? Is it relatively easy to get?

roversbabe

loubie_lou wrote:

I'm glad i found this post......Someone on the card forum told me that you could not do a balance transfer from an over draft to a credit card, i'm glad there is a way now cos I have £4000 worth of over draft! I'm thinking of doing a 0% for the life of the balance I think and Martin has recommended the Amex one. Anybody know what their credit scoring policy is like...? Is it relatively easy to get?

Hi loubie_lou,

Have a look at the credit card / stoozing forums - what you're talking about is a super balance transfer (SBT) and some credit cards do offer these.

This link goes to Martin's article on super balance transfers.

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1085355871,12390,

HTH

rb