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overdraft repaying...methods of...?
aisla
Posts: 1 Newbie
Hi not sure where else to put this.
Here goes my situation.
I have been with Barclays for 10years and have a current account, i did have a personal loan, paid off last year with no hitches (which i am currently claiming PPI of around £1500).
I have slowly ended up in my overdraft of £450, which i use everymonth.
My pay normally puts me to £500 credit. House bills come out and im at £0. So I saw my overdraft as my spending money as i pay little interest (about 5 a month)
Few months ago, I was in a sticky situation with my car and used temporary Wonga.com to get a quick payment to fix the car. problem is, although i had no prob paying it back, i was then down each month and have had to sub my pay with wonga.com every month.
I am generally very sensible with money until this happened with my car.
I would like to pay it off in full.
I have never had a credit card and wondered if it would be possible to take out a 0% credit card to pay off my overdraft and then when my PPI claim is returned, use that to pay off credit card and close its account. The reason I am considering this is because i would like to improve my credit rating and due to a number of unforseen reasons, require some money shortly, before my next pay is due.
Help appreciated x
Here goes my situation.
I have been with Barclays for 10years and have a current account, i did have a personal loan, paid off last year with no hitches (which i am currently claiming PPI of around £1500).
I have slowly ended up in my overdraft of £450, which i use everymonth.
My pay normally puts me to £500 credit. House bills come out and im at £0. So I saw my overdraft as my spending money as i pay little interest (about 5 a month)
Few months ago, I was in a sticky situation with my car and used temporary Wonga.com to get a quick payment to fix the car. problem is, although i had no prob paying it back, i was then down each month and have had to sub my pay with wonga.com every month.
I am generally very sensible with money until this happened with my car.
I would like to pay it off in full.
I have never had a credit card and wondered if it would be possible to take out a 0% credit card to pay off my overdraft and then when my PPI claim is returned, use that to pay off credit card and close its account. The reason I am considering this is because i would like to improve my credit rating and due to a number of unforseen reasons, require some money shortly, before my next pay is due.
Help appreciated x
0
Comments
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You are spending more than you earn, and have been for quite a while.
First you use your overdraft every month, then you have a problem with a car which meant you needed additional funds (which you haven’t paid back yet, neither the overdraft). Now you need more money for ‘unforeseen reasons’ which you want to finance with more credit.
You cannot pay off debt with more debt. Maybe the PPI comes through, maybe not. Do not count it in until you’ve actually received it. That money, if it comes, will not last long. You’re on the slippery slope, reduce your spending or earn more money.
You might post on the DFW board,
http://forums.moneysavingexpert.com/forumdisplay.php?f=76
the regulars there can help you how get your finance under control.
0
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