Little dilema what do you think?

johanne

Righteo.. Im toying with an idea and im not sure if its the best route or not..

I have an overdraft with A+L of £1500 at 0% until sept 07..Im currently £170 overdrawn.I get paid on friday but it will only be about £400. With approx £400 outgoings before i get paid again so i'll end next pay month £170 overdrawn too. Maybe a bit less with some frantic ebaying.. and cutting back (on an already so tight it squeaks budget.

Now im just wondering.. out of my debt the only ones NOT on 0% is the following:

Sainsburys Card - £350 - 15.94% APR
Barclaycard Initial - £104.03 - 18.9% APR
Total debt incurring interest £454.03

Basically im wondering is it worth paying these off with my overdraft even though it means i'll be £555 overdrawn this time in 4 weeks and living out my overdraft for a few months? Just so im not incurring interest?

Paying them off with a credit balance would be ideal i know but i cant afford more than minimum payments at the moment So im trying to "minimise the damage" to my purse.

I know financially it would make sense...specially as even when the 0% on the overdraft finishes the APR is only 7% ish.... but psycologically i HATE being overdrawn! Really hate seeing that little OD or minus sign on my bank papers and it confuses me working backwards! .. :rotfl:

I dont know what to do!!

TheAble

Pay them off with your overdraft. Put it this way, would you take seven pound coins to a drain every month and throw them in? That's what you're doing at the moment with your credit card debt.

SunderlandBlackCat

TheAble wrote: »

Pay them off with your overdraft. Put it this way, would you take seven pound coins to a drain every month and throw them in? That's what you're doing at the moment with your credit card debt.

I agree - definitely the way to go.

~evanesco~

I agree too, less interest, even if you are overdrawn for a bit, it won't take you long to get it paid, especially if you take the mindest that you should at least reduce you overdraft by what the minimum payments on those debts would have been each month.

Evans. xox

LewisC_2

The overdraft is the way to go, as the APR is much lower. However, you should aim to clear the overdraft by September if possible, so you won't have any interest-accruing debt at all

PM me if you need any more advice

Bambywamby

No dilemma...definately get those cards paid up.
It makes more financial sense.