help please overdraft

chris2707

Right I've kinda decided to get myself debt free this year and I'm now paying off most of my debts only big problem left is my overdraft which is 2700 basically because I was stupid and just kept upping my overdraft and stupidly spending but was just wondering on the best way of clearing this I've opened an account with another bank but don't know how to go about sorting the overdraft out I want it gone And get my money sorted

GeorgeUK

Is your credit file okay? Any late payments or defaults?

It might be possible to get a 0% balance transfer that allows money transfers as part of the promotion (like Virgin). You could them transfer the the money to your current account to pay off the overdraft (if it isn't 0% already)

chris2707

No my credit rating is below awful hence why I'm trying to get debt free

chris2707

Anything???

CH27

Set up a standing order from your new account to your old account & pay a set amount a month of your overdraft.

Do a SOA then you know exactly how much money you have available each month to clear the debt.

GeorgieFTB

Yeah have to agree with CH27. Treat it like any other debt, don't use that account as your current account as the massive negative balance will just be depressing!!!

Fill out an SOA and use the snowball calculator to work out how much room you have and how long it will take you. If you are brave post on here and people will be able to give you advice on cutting your costs.

Sorry mid-morning is normally a little slow round here...

Gx

allybee101

Oooh, I was going to ask this exact same question!
My overdraft ranges from 1200-1400 (once paid) to 2500-2700 (end of month :eek:).
I have a limit of £3400. I hate seeing the negative numbers but just can't seem to clear it. I've done a statement of affairs and I have around £250 spare cash from my pay cheque so I know I have the money available. I hate seeing that minus in front of the balance. I have cleared my 2 credit cards (£1300 and £800) but just can't seem to sort out my current account.

It sounds like I need to set up a new account and get myself sorted. £30 a month interest charges is not money I want to or can afford to throw away.
I need to get out of this rut.

arthursleep

After you have done your budget , use any spare money to pay down o/d. So if you have 250 spare after all bills when you get paid ring the bank and get them to reduce the balance by that amount. Probably best done on pay day so you can't see it as 'available' balance.

bobthedambuilder

I may be looking at this wrong, but if you open a new current account and start paying your income into this, surely the old account will have a larger average overdraft over the month, and therefore more interest payable??

Yargo1

my worry would be that if your bank which you have od with then notice you not using the account... will they ask for all the money in one go?

chris2707

Is there a way of going about it with out paying interest my rate is 18.9Apr i think with natwest and I'm paying like 20 a month in interest would it be worth looking at closing the account and taking it on as just another debt won't be able to afford more than about 60 a month and it'll take me ages and cost me more at that rate