Damaging my credit rating if I...

dwarfer09

Hi, I have a barclaycard with over £1500 debt in it, I also have an overdraft in my current account for the same amount.

I am the type of person who wants to clear debt, so I would like to clear my barclaycard balance off and grow my current account over the next few months.

Is this a good idea to pay it off with my overdraft? I know the interest won't be much either way but my question really is what is the best thing to do as far as my credit report is concerned, (if it matters).


Thanks

camuk81

As long as you stay in the limit of the overdraft then it should matter where the debt is.

However the bank may view this differently. plus do you want to get paid and then slip into minus each month.

It's also worth checking if your bank have to contact a credit check to reduce the overdraft limit as this could be a hindrance.

McKneff

How can you say youre the type of person who wants to pay off debt. If you pay off one debt by making another debt bigger, well its a bit of a contradiction of terms.

Pay it off with your overdraft by all means, but cut your credit card up or you will be tempted to use it, therefore making matters even worse.

Sorry if that is blunt, but that's what is coming over.

CLAPTON

no, a bad idea

the CC you can pay off in an orderly matter determined by you

an OD can be withdrawn at any time

if you want to clear debt then reduce your spending and/or increase your income and pay the debt down rather asap than simply transfer it elsewhere.

dwarfer09

Okay thanks. I'll pay it in full over 2 months.