Overdraft / loan advice please

Elvee_2

Hi,
I'm just wondering if someone could give me their advice.
I have a £500 overdraft with Nationwide, which was interest free, and have just been told via a letter that 'my credit score did not reach the level required to renew your facility'. They are going to add interest to it from the end of this month, 1.45% variable per month (18.9% EAR). I do have a bad habit of going over my overdraft, at £30 each time...
I also have a bank loan with RBS, £5000 with interest 3.75% p.a. (was still classed as a graduate rate loan). I only pay £92 a month into this loan, and the interest at the moment is around half the amount of this payment...
Debt eh. Just wondering if anyone has advice for the best way for me to clear my overdraft, preferably a way to transfer it to something that has no interest... if my credit rating isn't now too low?
And the loan I have, is there a better way to pay off debt like this?
Thanks...
Elvee

GeorgeUK

If the loan is 3.75% APR, that's a great rate for the loan and you should probably just keep paying it. Even if you could get 0% for 12 months, you probably wouldn't clear it in time so all the transfer fees even if you could get 0% cards when you needed them may remove any possible saving.

For the overdraft, could you open another account and see if you can get a free overdraft? Not sure which banks are best for free overdraft facilities.

Some 0% cards allow you to transfer money to your current account as part of the promotion (eg Virgin). You may be able to move the overdraft amount to one of these and pay it off. Probably also worthwhile posting up a statement of affairs. There's no point getting more credit to pay off the existing credit if you're just going to keep getting into more debt. There may be some savings we can point out to you so that you won't need to use the overdraft and hopefully close it.
https://www.makesenseofcards.com/soacalc.html