Overdraft

leighjones123

Hi All

Well, to give you a bit of background... about 2 years ago, I went through a bit of a bad time, and ran up around £7,000 in debt.

Over the past 7 months, i've been promoted at work, come down to earth, and started throwing money at this debt to get this paid off.

I've now currently got:

£750 - Credit Card -20% APR
£100 - Credit Card - 29.9% APR
£700 - Next Directory - 26.49% APR

An overdraft with Lloyds TSB (interest free £1500) and Natwest (£500)

I've moved back home, so monthly bills are around £140.


So - My Question...

Lloyds TSB have recently upp-ed my overdraft limit to £3000..

Interest Rates: 0.66% Per Month 8.21% EAR

So - is it worthwhile me using my overdraft to pay off some of the above debt, and then still instead of paying these companies and accruing interest from them each month, just gradually lower my overdraft limit with Lloyds TSB, or do you recommend me telling Lloyds TSB to keep my overdraft as it was and carry on as normal?

What would be the best option do you think?

What would be best in terms of my credit rating also? Settling these credit accounts and pushing it to my overdraft or..?

Thanks so much for your time

Leigh xx

MFWannabe

Hi
With reference to your credit rating it's not looked on favourably if you're seen to be in your overdraft every month.
If your outgoings really are only £140 per month could you not just pay off the cards over the next few months? How much do you earn?