Overdraft! What to do?

bankhater_1965

dont borrow money to pay off borrowed money , contact the bank to pay a reduced amount on a payment plan , paying it off by other credit meens isnt solving anything , overdrafts and credit card are the 2 most expensive forms of credit and eventually might spirall out of control

Cash_Flow

bankhater_1965 wrote: »

dont borrow money to pay off borrowed money , contact the bank to pay a reduced amount on a payment plan , paying it off by other credit meens isnt solving anything , overdrafts and credit card are the 2 most expensive forms of credit and eventually might spirall out of control

Great advice so the OP can have a arrangement to pay marker on her credit file for six years.:o

bankhater_1965

Cash_Flow wrote: »

Great advice so the OP can have a arrangement to pay marker on her credit file for six years.:o

what a very negative inconstructive comment , is your way of solving the problem take more debt out to pay debt ???/

redpete

bankhater_1965 wrote: »

what a very negative inconstructive comment , is your way of solving the problem take more debt out to pay debt ???/

Can be, if you are exchanging an expensive debt for a cheaper and affordable one, getting rid of the old debt totally and paying less in the long term.

Cash_Flow

bankhater_1965 wrote: »

what a very negative inconstructive comment , is your way of solving the problem take more debt out to pay debt ???/

At what point did the OP state the debt was a problem?

Many people on these boards secure new credit facilities to pay off more expensive debt, if the OP would prefer to take out a loan and clear the O/D in 12 months I don't see the problem.

What I don't understand is why you believe the better option is to enter into a arrangement to pay with Halifax which will add a nice "AP" marker on her credit file.

So based on your method of thinking in the event that my balance transfer rate expires before I clear the balance I should let it revert to 19.9% rather than apply for a "new" Balance transfer card?

pippitypop

Agreed with above, to service my existing debt I have taken out new debt out to pay it off (under credit cards). Now I am paying less per month and paying no APR whatsoever, and I have over a year and a half to pay the majority of it off. Most of my debt was at 10% interest so I am actually saving £3000 in interest!! I think if you can't afford to pay it off, then you should transfer the debt until so it's cheaper to service and set up your own repayment plan.

peppa<3

Update: Loan was taken and paid off by 7 months (was meant to be over 12 months). Ended up paying less interest on the loan than I was on the overdraft so worked well. Overdraft was closed at the time of taking out the loan and has not been re-opened.