Halifax Current Account

alicool

Hi

Was wondering if someone can helpme please

I currently have an overdraft of £2200 on the Halifax Current Account, this is the only debt I have had and unfortunately for me was due to a previous relationship where I was silly enough to think that I would have been giving the money used back to me, this obviously hasn't happened

At the moment it is up to its limit and probs will be for a while until I can afford to clear it, I am going to be paying off some each month, £100

I am currently being charged around £31-£33 a month interest

Is this likely to go down?? I know it will when I am paying it off but in general, or is there another account that I can transfer it to within Halifax to keep my charges down, I dont need to use the account I just want to be able to keep the interest to a minimum

Thanks in advance for your help

Uncertain

You would probably be cheaper to get a loan (maybe from another bank) and use this to pay off the o/d.

Or, providing you are sure you can pay it off in 17 months, look at a credit card with 0% balance transfer rate for 18 months. You will pay a fee of about 3% but it will then be interest free PROVIDING you stick strictly to the terms. I think Virgin Money are offering something that might do, but check and double check the terms.

alicool

Thanks for your reply, I have tried for a loan but due to me having no credit whatsoever, I was told that I can't be accepted as my score isn't high enough, yet if I had debts up to my eyeballs I would get accepted, I just wanted to know if there was an account within halifax that I could change it too to keep the interest down as that seems to be my only option

Thanks

YorkshireBoy

If the account is returned to credit once per month, consider moving to A&L who will consider matching your O/D limit.

You don't have to move everything...just switch a couple of DD's or SO's. Then use the 0% (for a year) A&L overdraft to settle the Halifax O/D.

If your Halifax account isn't returned to credit each month, or if you've other problems such as paid/unpaid item fees etc, then there are several options...

1. The SBT card or loan options suggested by 'Uncertain'.
2. Get yourself a long 0% on purchases card and use that, rather than the O/D, for your essential spend each month.
3. Shift all your regular payments (DD's/SO's etc) back to the end of the month, ie just before payday (assuming you're paid monthly?).

Options 1 & 2, especially, will require a great deal of self-discipline on your part.

It goes without saying that all the above should be used to supplement the obvious 'earn more/spend less' approach to repaying your debts.

Good luck.