Some Financial Advice?

BlackBerry

I was wondering if anyone could give me some advice.

I have a student overdraft of £2000. I no longer use the account and I do intend on paying it off and closing the account. It has been interest-free for 5 years and to be honest I'd kind of put it to the back of my mind. But now I'm no longer a student. They've written to me to tell me they're going to start charging £1 per day interest.

Not complaining, thats what I signed up for I guess. I was just thinking about other ways I could pay this off with lower interest? Like maybe another loan or a credit card? Can anyone suggest anything? I haven't got much more debt than that and my credit rating is good.

Mrs_Jojo

SOA needed so clever people can see what you do owe and how much money you can afford to throw at the debt :-)

DVardysShadow

I reckon your APR is 18.5%. So 2 options

• Move other debt at a higher APR into this account
• Move this debt to a credit card with a lower APR

Don't move the on to a card by taking out cash - that will come at a higher APR. Do it by purchasing stuff you would buy anyway and paying bills on the one account and paying the equivalent amount into the other

Fang_3

Who's the account with? If Halifax then I'm sure that if the amount is higher than £1500 then the charges are £2 a day.

Fang_3

DVardysShadow wrote: »

I reckon your APR is 18.5%. So 2 options

• Move other debt at a higher APR into this account
• Move this debt to a credit card with a lower APR

Don't move the on to a card by taking out cash - that will come at a higher APR. Do it by purchasing stuff you would buy anyway and paying bills on the one account and paying the equivalent amount into the other

The APR will be that now, but it will only go up as the balance falls. For instance, if you are £10 overdrawn then the APR is something like 3000%.