advice needed about overdraft. thank you

lilvixen

hi there,

i am trying to get rid off my overdraft of £1200 and getting no where fast. i am getting charged fee for being in it and using it. it is with tsb.

Its my own fault i have it as i got hooked on online gambling site but that is all sorted now.

I'm thinking of getting a loan with tsb and paying overdraft off then just pay off the loan. Will taking out the loan affect me getting money in the future as me and my fella will properly need one to get our own place.

Any help gratefully received.

thank you

JustinCredibleGillespie

Might be worth you opening a new account for your salary and transferring 'x' amount every month for a year til the OD is cleared instead of getting into more debt with loans.

JCG

xx

lilvixen

i was thinking that would get rid of the overdraft though and i'd just be left with the loan which i know money would get paid into every month and could put extra into it when i have it.

i hate having the overdraft looking at me and reminding me how stupid i was.

i could then put some of my wages into my savings account which im trying my best to do

badger_

I don't know if it's something you will be able to do but I took out a Virgin BT card which allowed transfers directly into a bank account, then I transferred the amount of my OD onto the card. It's 0% for 20 months although you do have to pay 4% fee for the transfer.

lilvixen

is taking out a loan to pay it off a bad idea then? i just want it gone

R_P_W

Hi, about 10 years ago I was living beyond my means and ended up with various credit cards and overdraft etc. At the time I was like you thinking if I get a loan to cover it then you will have one payment, you know what it will be and how long it will last etc.

Reality is that I borrowed enough to cover my debts and a little more (which I don't even know where it went).

It took me 5 years to pay it back, the interest wasnt too bad (think it was (7%), but over the 5 years my salary increased quite a lot, I could afford to overpay, but I couldn't because I was only allowed to make the fixed payment or clear the balance entirely.

If you can get a 0% balance transer card then I think that might be a better option - in hindsight I know it would have been a better one for me.

lilvixen

ok thanks for the help. i will try and sort it and let you all know how i get on

badger_

Good luck for me the OD was costing £20 p month but the min payment on the Virgin CC will be £25 and actually be going down plus I can overpay it as well.

I'm not sure if anyone else does a card where you can pay into your account. It's a super balance transfer card you'll need.

JustinCredibleGillespie

I would go with a new account & transfer every month rathering than taking on more debt. It'll be better for you in the long run

All the best

JCG

xx