just got £3000 bonus best way to pay off debt?

jon142

Hi all,

I've received a £3000 bonus from work this month due to a really good product we have launched and I happen to owe;

BARCLAYS - £1500 Overdraft.

NATWEST - £1150 Overdraft.

RBS - WAS £1300 now just £290. Made a £1000 payment off last month.

All in all.... £2940 I want to use all this money to become debt free completely.

Now all these account are interest free student overdrafts.

I've paid nothing in interest ever. Borrowed the money in (2006)

I also have a M&S credit card at 9.9% interest £3000 limit - nothing owed

I also just got approved for a Halifax Clarity - £4000 - 12.9% APR card - about 5 days ago. - obviously nothing owed. - got it to withdraw cash abroad and generally use for spends.

I owed nobody nothing else. Not 1p

What's the best thing I should do? Close and cancel all the student overdrafts? I.e decreasing my available credit overall. And then use the credit cards to pay in full?

Should I just keep one and lower it? If so which bank?

I have owed the £2900 in overdrafts for quick some time.

My income is £20K

Ta.

opinions4u

Stick the money in an easy access savings account paying 3%+. Ringfence the money and only use it to repay debt as and when they start charging you interest.

Or a few months before you're likely to borrow for a mortgage clear the lot then.

jon142

opinions4u wrote: »

Stick the money in an easy access savings account paying 3%+. Ringfence the money and only use it to repay debt as and when they start charging you interest.

Or a few months before you're likely to borrow for a mortgage clear the lot then.

The savings won't show on the credit file tho.?

Part of me wants to make sure my credit score improves.

CLAPTON

use the CC regularly for things you buy anyway ans pay in full every month
this will improve your credit rating