£3900 into overdraft and need advice please .

glynnt

Hi Guys

Im in my overdraft to the tune of £3900 and my limit is 4500.
Ive pintointed what my spending habits are and have found ways to reduce my outgoings .
I tried to get a loan from sainsburies to consolidate my debts but got delclined .
Whats the best way to come out of it , reduce my outgoings abd eventually be free or ring my bank and get a loan off them , i bank with natwest .

Thanks guys

G

lesalanos

can you post a SOA

Tixy

Hi and welcome

What apr are you currently paying on the overdraft? do you have your wages/income paid into this account? Do you get back into the black at anytime during the month? Is this the only debt you have?

How much do you think you can afford to pay towards the overdraft each month?

Do you know why sainsburys declined you a loan?

You need to consider whether natwest would be prepared to convert the overdraft into a loan (they may not because an overdraft is repayable on demand whereas with a loan can be taken over several years for them to get their money back.

Usually a loan is a cheaper APR but that does not always make it the cheapest option. If you are still using this account as your current account even with a higher APR it could work out cheapear as your balance varies over the month (and is presumably a smaller overdraft just after pay day) and obviously intererst is calculated daily.

If you have other debts as well as the overdraft it might be useful to post a detailed statement of affairs so we can advise on your full situation - http://www.makesenseofcards.com/soacalc.html