Help please - Credit Card/paying off debt

NicciJB

I have two high interest credit cards and one store card, with a total debt of £800. I was declared bankrupt in 2004 and discharged in 2005.

I was recently offered a "pre-approved" low interest credit card at my bank and so went ahead with the application thinking I could balance transfer my existing credit cards (0%).

I was told the card was approved and it would arrive in the post within 5-7 days. However, I subsequently received a decline via letter for the supposed "pre-approved" credit card. I presume because of the bankruptcy.

I now want to clear the cards and am bamboozled by the options available. I want to do this as cost effectively as possible and now the bank credit card is no longer an option, I am left with the following:

1) Upgrading my account to “Additions” paying £14 a month account fee for a £1400 overdraft. The first £300 of overdraft is interest fee. The rest is charged at 12.9%

2) Not upgrading my account to “Additions” – hence no account fee, and having a standard £1375 overdraft charged at 19.9%

3) Taking out a loan of £1375 or £1400 over three years at a rate of 22.9%

Help!! What would be the best for me in terms of paying interest? My instinct was to go for a loan but the bank clerk was trying to convince me that an overdraft would be more cost effective.