Overdraft or Credit Card?

creditcardnewbie

Hello to you all,

Apologies if this has been posted elsewhere but I have searched and was unable to find anything relating to it.

My question is this:

I am in the process of paying all my debts off and I currently have an overdraft of £2,000 with Nationwide Building Society but it is almost at it's limit (currently £1,900 balance). The interest I pay is on average £20 or so a month. I also have a credit card almost at it's limit too (Barclaycard Football £2,000 limit £1,800 balance). The interest I pay on this is also around £20 a month.

I was wondering though which of the 2 I should "prioritize" to pay off first? Each debt is around the same in interest payment but I was wondering which looks worst to a potential lender if I was applying for credit? I remember I was declined once in the past for an MBNA card and the guy told me I was turned down because my overdraft was at it's limit so I suspect the overdraft may be the one to prioritize and pay off first but thought I should check on here first.

Apologies for the length of the post and many thanks for any thoughts or advice you have on this,

creditcardnewbie :beer:

Marco_Panettone

The overdraft can be called in at any time without notice. Not sure about the impact on potential lenders, but having to find £2k for immediate payment looks tricky.

Try to pay more than the minimum on the credit card too though (even £1!), then you're eating into the debt as well.

bengalknights

As above definitly tackle the overdraft first and then the credit card.

creditcardnewbie

Marco_Panettone wrote: »

The overdraft can be called in at any time without notice. Not sure about the impact on potential lenders, but having to find £2k for immediate payment looks tricky.

Try to pay more than the minimum on the credit card too though (even £1!), then you're eating into the debt as well.

Hi Marco,

Many thanks for your reply. It is very much appreciated. I did suspect that the overdraft could be called in at any time so it looks very much like that is the one I should pay off first.

Thanks for your advice.

Cheers,

creditcardnewbie :beer:

bengalknights wrote: »

As above definitly tackle the overdraft first and then the credit card.

Hi bengalknights,

Many thanks for taking time to reply. I appreciate all the advice and help I can get. The overdraft shall get my full attention followed by the credit card.

Cheers,

creditcardnewbie :beer:

Marco_Panettone

Don't forget to keep up the minimum payments on the credit card though. Direct debit is easiest, and you don't have to worry about it once it's set up. It'll stop any late/missed payments.

jonesMUFCforever

I would say that OP should pay more on the highest charging product first until that is paid off then tackle the next highest.