Paying off CC with overdraft

Know_The_Ledge

Hello everyone

I have credit card debt of £1,600 and would really like to get this paid off as soon as possible. Each month I find it difficult to pay anything more than the minimum payment due to not having a lot of money and paying other bills etc.

My idea was to pay off as much of the credit card debt as I can using the overdraft from my bank which I am currently not using.

My question is, is this a good idea in terms of the interest I will get charged etc.

If anyone has some advice that could help I would really appreciate it.

Thank you so much for reading

CLAPTON

a good start would be to say what the APR of the CC is and what the APR of the OD is
plus how much can you afford to pay off each month?

DES_1001

if you do pay off your card make, sure you don't start using it again, otherwise you'll have a large overdraft + credit card bill.
Have you tried to get 0% card?

Know_The_Ledge

CLAPTON wrote: »

a good start would be to say what the APR of the CC is and what the APR of the OD is
plus how much can you afford to pay off each month?

I am not sure what the APR is on my OD, it is with Barclays so I am guessing it is whatever their standard charge is. I am going to try to apply for a 0% APR credit card, but will struggle to pay of any more than the minimum payment

Robert_Sterling_3

It looks as if whatever you do you will be straggling with your debt.
Could you spend less and/or earn more?

Wannabedebtfree

Like Clapton said, it would help to know some figures.

But hypothetically speaking and assumptions are having to be made such as no PPI and no more spending on the card.

if the CC is 2.9% per month then on £1600 interest would be approx £47 and the minimum payment (assuming 5%) would be approx £80.

If the OD is about 1.5% per month then the interest on £1600 would be aprox £25.

Problem with the OD is you have to make sure that you keep to the T&C, such as "make sure that the debit balance is substantially reduced regularly".

How much can you afford to pay off the card each month?

It would help if you could give us some rough figures so that we could help you more.

sparkey1

Hi there. If you can tell us the overdraft rate, and also the credit card rate we will be able to tell you. Tell us the type of card as well.