Overdraft being used on current account. Whats the best way to get out of debt

lenniejive

I have about £4K on a bank account overdraft and wanted to do a balance transfer onto a credit card so I could manage the debt in one place but apparently I can't do this.

What's the best way to manage this debt rather than paying the overdraft fees?

Loan?

Lokolo

Who are you currently banking with?

You should also do this:

http://www.makesenseofcards.com/soacalc.html

And attempt to cut down on any unncessary outgoings. Post the results here and others can help you budget.

daveyjp

Reduce your overdraft limit every month by a sum you would have to pay on a loan. This is taken off the bottom line so you can budget around the money you have left.

missile

You might be better getting a personal loan and clearing your overdraft.

jamesd

Virgin and other MBNA stable cards offer balance transfers to current accounts for a 4% balance transfer fee instead of the usual 3%. Then 0% for a year or more. It's the cheapest way to get a loan to do this at one time.

An alternative is a 0% for purchases card on which you put all of your day to day spending to accumulate money at 0% while not spending the money in the bank account, so the overdraft reduces. You need to take care that you don't spend more than you otherwise would.

lenniejive

Great thanks guys. Will do some investigating and come back if I have any more questions.