Not Much Debt - But Advice Please

uncle_silver

Hi,

I have an overdraft of £2300 which i am consistantly going over and struggling to pay back. Its currently around £2600 and i've still got the rest of the moneth to go.

I also have £3500 on a credit card just transfered over to virgin money, and have an available balance of £4100.

Should i use the £600 on my credit card to bring my overdraft down a bit (as it is interest free for 16 months?) Or shall i leave my credit card alone and continue paying it off?

Thanks

Dan

GeorgeUK

If it is interest free then i would definately transfer (remember you can only transfer about 95%).
Also post up a SOA so you can get you finances organised and hopefully find some areas to save money.
http://www.makesenseofcards.com/soacalc.html

Tixy

Hi

I'm sure people will suggest all sorts of options but here are 2 of mine

When you say use the £600 do you mean doing a transfer to your current account & paying the BT fee or do you mean make this months purchases on this card instead of with your debit card?

1) Open a new bank account with no overdraft and move your income & dds to that account. Then set up a standing order to repay your old overdraft at a monthly payment you can afford. (Make sure you cut up the card of the old bank account and stop using it as a current account and treat is like a 'normal' debt)

2) If you have just transferred your credit card balance then is the old card the type that allows transfers to current accounts (known as super balance transfer cards) if so how about calling the previous card provider and asking what special BT rates they have - they may allow you to transfer the overdraft over at a low life of balance card.

Whichever option you choose you need to also work on reducing your expenditure or increasing your income so that you can start paying more off your debts on a monthly basis. Whilst shuffling debt can be useful its not a long term solution to getting out of debt.

misspoppy

HI

Going over your OD and getting charges will damage your credit rating every time it happens so you need to get on top of that. Tixy has given you some good advice

uncle_silver

Thanks for the advice.

When you say use the £600 do you mean doing a transfer to your current account & paying the BT fee or do you mean make this months purchases on this card instead of with your debit card?

I meant use the remaining £500-600 on the credit card and transfer it into my current account and pay the BT fee. This should bring it within my overdraft.

I do have one of these new O2 money cards. I've set up a weekly payment onto the card and just spend on that card. Leaving my main bank account for bills. However i sometimes still have to use the other. Thats why i still havent seen it come down. I am a new homeowner and slightly underestimated the additional things that crop up.

On the plus side, have given up smoking. Thought that may help financially but it just seems like nothing i do helps.

I should be able to get by on what i earn really. Just

Tixy

As George says if you post up an income & expenditure we might be able to find areas you can make savings etc (examples are you paying over the odds for buildings & contents or life insurance or are you paying for internet when you could get it free with satellite TV, have you checked you are in the correct Council Tax band).
Some of the regulars here are really good at helping you get the most from your money.

Well done on quitting smoking