Clearing Overdrafts!

GradInDebt

Hi,

I'm new here and have decided I need to get on top of my current debt.

I didn't really live within my means whilst at university and have accrued debt through overdrafts.

One of which is a £1,250 overdraft with Natwest and is due drop from £1000 to £500 interest free until next summer.

I also have two overdrafts with Nationwide, a £600 and £850 overdraft. Both of which are normally maxed out before I get paid.

It's not huge or out of control, but I'd like to clear it.

I'd also like to complete my driving lessons in the next 2-3 months so would need £400-600.

Would it be worth me taking a £3000 loan over 36 months, with a final repayment of £3449, with the option to repay early without charges?

I can afford the repayments, I've just taken on a new job and will have enough after outgoings for this.

I need to clear it, even if its just so psychologically I feel better!

CH27

Why take out a loan that charges interest to pay off an interest free overdraft?

GeorgieFTB

I've been in your position, as long as it is all manageable then you are in a good position, do an SOA, http://www.makesenseofcards.co.uk (I think... I just typed that so it might be .com...) post up here and lots of experts will tell you how to save some cash on your expenses.

I think you should be able to get yourself in a good position in a couple of months then you can take driving lessons and you won't need to worry too much about affording them.

Gx

NeverAgain_2

Nothing wrong with your loan plan if it makes you feel better.

Learning to drive is worthwhile, so even better if you can get that sorted as well

But the risk is you will run up the overdrafts again in the meantime.

You may have the self-discipline not to do that.

The fact you are on to your debts before they have got out of hand suggests you may be able to avoid the temptation.