Help with really basic decision please!

Seaxwyn

Hello there

I'm struggling with a decision about whether to pay off an overdraft. I'm not sure why I'm so blocked about it, but I am, and would appreciate advice.

(And yes I know I should post a full SOA but lots of things are in flux (possible new job, new M&S card approved but don't know credit limit etc). I aim to post an SOA in January.)

Meanwhile, the situation is as follows:

I recently opened an Alliance & Leicester current account (thanks to this website) and paid a few debts with it. It now stands at £1176 overdrawn. The o/d limit is £3750, with the first £2500 at 0% and the rest at 5.9%

My old NatWest account will be £1823 overdrawn once this month's standing orders have gone out. It's at 16.62%, which is my highest APR.

I have to pay minimum payments on credit cards of about £350 (all lower APR than the NatWest overdraft) and I have a tax bill of £1200 due 31 January 07.

So I suppose I should pay the cc min payments only and then pay off the NatWest o/c, and be left with £400ish to live on til I next get paid. Then in january, pay the tax bill from the NatWest account, which will have enjoyed two months without an overdraft.

Is that what you folks would do? I guess it's right by the MSE 'pay off highest APR first', but I'm struggling with the idea of seeing my new account descend to its limit so quickly!

Thanks for reading and for any advice you can give.

Seaxwyn

lynzpower

yep pay off your overdraft with the natwest from the A&L one.

Definately.

Although it is very difficult to really say, without an SOA, how come you are waiting till january

Seaxwyn

HI Lynzpower

Thanks for the advice, I needed someone to tell me that.

Lots of things are up in the air. My husband and I have both applied for new jobs and are waiting to hear. If either or both of us get them it will make a big difference to our income, but also outgoings (travel, childcare costs). I'm optimistic that at least one of us will be lucky! So if I posted an soa now Ii'd only have to post another one in the near future.

Also, Ive been accepted for a 3.9% LOB cc but am waiting to hear the credit limit, so that's another unknown quantity.

I've done an SOA for myself and learned lots from this site nd am putting into place lots of changes, and gearing myself up for a big push in 2007 to change lots of aspects of my life. Posting an SOA in January will be a good symbolic step for me.

Thanks again for your help and wise answers to this and other questions.

Seaxwyn