Work Bonus advise

daily_2

That make believe security line always come up, it's an impossible nut to crack, even Martin's words don't do the trick. It's as a negative (£250 of extra debt), rather than a positive (£250 of savings).

Kitten_Pie

I know, I;m sure i'll get there eventually just need a bit of time, lets see how i feel next month when i can see a noticeable change in the debt.

Tixy

Kitten pie I think like you I'd be tempted to keep the £250 savings, whilst in theory it would be best to pay off a debt (interest cost wise) recently banks have been reducing overdrafts and credit card limits and I wouldn't want to be stuck without any type of emergency fund. Its not good thinking you will rely on an overdraft or credit card as an emergency if the day before (eg) your car breaks down, you get a letter to say you CC limit has been cut to £5 above the balance.

I'd use nearly all your bonus against whichever debt has the highest interest rate and maybe keep say the £70 (or whatever it is over £1000) for a treat.

Congrats on the bonus - hopefully you might get one next year as well!

GeorgeUK

There are a few ways to look at tackling this.

If you are paying interest on all your cards though, i would suggest clearing the card with the lowest balance and trying to get a blanace transfer offer after you receive a nil statement. This could save you a fair bit in interest each month.

Kitten_Pie

Hi all,

Thank you for your ideas and help. I have paid off my overdraft yay!! feel much better. I have still got the savings but am putting the money i generally put in savings into my credit card debt. Getting there v. slowly but its the only way.


Thanx again

Holly

TestCall

Congrats on paying off the overdraft!

As has been said above, remember that any debt you pay off means that you then have the remainder of the limit available, so you can pay for emergency bits through that. But make sure you're disciplined and don't use it unless absolutely 100% neccesary.

Fire_Fox

If you have paid off your overdraft and gone into credit, apply for an Alliance and Leicester current account as they will match your overdraft at 0% for one year. You can also get £55 if you go via a cashback site AND use the A&L switching service (tick the box when you apply) for at least one direct debit.

Kitten_Pie

Great Idea Firefox, unfortunately we have our mortgage with A&L and all our bills come out the A&L joint account.