Is it ok to have mortgage CC and bank account at same bank?

Mumolulu

Or is this frowned upon?

I have just opened the Halifax reward account, (initially to get the fiver..)my mortgage is with them, as is my credit card, and I am considering using the reward account as my normal debit account.

My current account is in barclays, but I have a £500 overdraft, which I can't get out of, so have just applied to Tesco for a credit card, 0% purchase for 12 months, (only wanted £500 limit but I got over £2k :eek:) so I will use that for my normal food and petrol which would normally be spent within my overdraft, this will then reduce and then enable me to cancel my overdraft and I will then set up a payment monthly to the Tesco CC once overdraft at Barclays is in credit. I am then contemplating closing my Barclays.

What are the general thoughts?

onlypaddy

first thought is, first signs of relying on credit! time to head over to debt free wannabe and post an SOA so people can help you with where to cut back and get you back living within your means

other than that - if you miss payments on debt accounts and you bank with the same institution, they have the right to set off i.e. they can take payments directly from your account without warning

Mumolulu

Thankyou for your concern, however, I have some savings, I am extremely disciplined with money and I'm desperate to get rid of this overdraft. I have managed to rid myself of my own personal overdraft with barclays years ago that was £250 by not spending anything over the course of a few months, but this £500 is in my joint account with hubby which pays for food, petrol and bills etc. I am perfectly able to live within my means, as I have complete control, but the only way I can get rid of this overdraft is to transfer it to another 'means' and pay it off slowly, rather than calling Barclays every week to reduce it £10 less etc as that is just annoying!

With all due respect, its £500!! I certainly don't need debt advice! I have no loans, I am saving well since Christmas, and have a few hundred quid on my Halifax credit card and I'm in no other debt!

I would prefer to start afresh, and pay off my od, once it has transferred somewhere else, and I can start to see my current account in some kind of credit, as I hate logging on and seeing myself minus every month. I'm having a money overhaul and are very sensible thankyou.

Any other advice welcome.

onlypaddy

the first line of your defence defies you....

what savings interest are you earning, compared to the interest charged on the overdraft?

e.g
500 @ 3% savings = £1.25 (gross) per month
500 @ 20% OD = £8.33 p/m

so losing £7.08 per month, or £85 per year

noh

Use your savings to pay off the overdraft and close the account.
Use the Tesco CC for purchases and pay the minimum each month. (Make sure you don't exceede your credit limit.)
Put the difference between that minimum and your actual monthly spend in a savings account add to that your usual monthly saving amount.
When the 0% ends pay off the credit card.

Mumolulu

onlypaddy wrote: »

the first line of your defence defies you....

what savings interest are you earning, compared to the interest charged on the overdraft?

e.g
500 @ 3% savings = £1.25 (gross) per month
500 @ 20% OD = £8.33 p/m

so losing £7.08 per month, or £85 per year

My savings are just over £500, I know I could use this for the od, but my family haven't had a holiday for 6 years and I would love to be able to go to my husband in a few months with £1000 cash and say 'Where are we going?' !!! My children are 5 and 2 and we really want to take them abroad for the first time this year, paid for, rather than on a credit card.

My savings are in a Barclays ISA, I'm not too great with interest and figures etc, I paid £5 interest on my overdraft this month, not sure about my savings. I am sure I haven't had any additions to my account, so maybe they pay it quarterly?

nemoo

Mumolulu>

I think I get what you are saying - it looks and feels better if you are paying for the (eagerly) anticipated holiday as cash that you have put away than using a plastic but in a way you are still shuffling the funds as your overdraft would still exist albeit only £500.

That said, wouldn't you be a little better off if you get a 0% interest card (I think virgin money has a good offer...pls look at MSE pages) or a cash back card to pay for the holiday and you use the savings to clear out the overdraft so you are essentially debt free - until you have your holiday that is!

Given that you are incontrol of your financial affairs I'm sure you'd have the discipline to pay off the holiday cost without incurring any interest or any other charges.

just my 2 cents!

Mumolulu

nemoo wrote: »

Mumolulu>

I think I get what you are saying - it looks and feels better if you are paying for the (eagerly) anticipated holiday as cash that you have put away than using a plastic but in a way you are still shuffling the funds as your overdraft would still exist albeit only £500.

That said, wouldn't you be a little better off if you get a 0% interest card (I think virgin money has a good offer...pls look at MSE pages) or a cash back card to pay for the holiday and you use the savings to clear out the overdraft so you are essentially debt free - until you have your holiday that is!

Given that you are incontrol of your financial affairs I'm sure you'd have the discipline to pay off the holiday cost without incurring any interest or any other charges.

just my 2 cents!

:cool: Hmmmmmm, worth thinking about. Thanks. I suppose debt free till a hol is one way..I could always keep saving hard..
Food for thought, thanks.