Pay off OD or Credit Card

hebeGB_2

Hi there.

I have an OD on joint account with Halifax which I tend to live in, at cost of between £31 to £55 per month in fees (based on £1 day plus £5 per day if go over the £2500 limit which occasionally happens. I also have a credit card with APR 17.9% which costs approx £41 per month interest. I have the opportunity to pay off the OD or to pay £2500 off from the credit card. Which would be better option? Or doesn't it matter?

Any thoughts would be appreciated.

agrinnall

I would say pay off the OD simply because at any time Halifax can demand the money back, and if you've already used the spare cash to pay down credit card debt you could find yourself having to try to get an expensive loan to pay your OD.

opinions4u

Pay off the overdraft and change whatever habit it is that allowed it to build up.

Then hammer away at the credit card.

izools

Also, once you've cleared your OD, reduce the limit to next to nothing otherwise you'll be back here sooner than you might expect

hebeGB_2

Thanks for the advice everyone - OD it is methinks :0)