How to get out of an overdraft?

Seagull_Rob

My query to you guys is, how do I get my overdraft down?

I'm with Nationwide and have a Flex-Account. I am 90-95% living in the overdraft throughout the month. I get paid, am then in black by £100 or so, then slowly go down to my overdraft limit which is £1,950. Recently I have paid off two loans, so I was wondering how to get out of this overdraft and live permanently in the black!

My possibilities I suppose are:

1. Transfer banks and pay off Nationwide every month until £0
2. Transfer the debt to a credit card

What do you chaps think is the most sensible approach here?

Thanks very much.

Rob

opinions4u

Spend less.

Really.

duchy

Ask Nationwide to reduce your overdraft by £100 a month-if they won't then open a new account elsewhere and use option 1 setting up a standing order for £100 into the Nationwide account every payday.....and cut up your Nationwide cards so you won't be tempted.

Option 2 is silly cos it'll cost you loads in interest and you are already broke so can't afford it

Seagull_Rob

opinions4u wrote: »

Spend less.

Really.

I also have twins on the way.

stephane_2

Transferring to a different bank might not be necessarily the right option....why are you so much into your overdraft every months? You might end up in the same situation with the other bank & end up paying 2 overdraft.
Have you looked carefully at all your outgoings? Surely there must be things that you could reduce or let go until your overdraft has been paid for.
Transferring the overdraft onto a credit card is possible but you'll need a card that would allow you to transfer fund directly onto your current account, only a few providers offer that option like MBNA/Virgin/Post Office....there will be a fee of about 4% for the transfer....but it's by far guaranteed that you would get accepted for one of those cards, your credit report will need to be in impeccable order, but lenders will also see that you are dipping heavily into your overdraft on a monthly basis which might play against you....

R34GTT

As long as you are disciplined, then if you can, get a 0% credit card and do all your essential monthly spending on it, have the DD setup for minimum amount and use your salary to clear the overdraft over a couple of months. Then once you are out of the overdraft pay down your credit card balance before the 0% period ends.

KingElvis

Seagull_Rob wrote: »

I also have twins on the way.

Spend less is the best advice you can take, even with twins on the way, it's simple maths.

The other way would be to transfer the overdraft to a super balance transfer credit card and then pay that off at 0% over 20 months or something.

Here's the catch, if you've lived in your overdraft for quite some time, it's unlikely you'd qualify for one of those cards...catch 22

Best advice? spend less, keep a spending diary so you can see where your wasting money (subscription tv, phones, takeaway food, drink, dinners, nights out etc etc) and go down the debtfree wannbe forum and do an SOA.

Good luck.

CLAPTON

Seagull_Rob wrote: »

My query to you guys is, how do I get my overdraft down?

I'm with Nationwide and have a Flex-Account. I am 90-95% living in the overdraft throughout the month. I get paid, am then in black by £100 or so, then slowly go down to my overdraft limit which is £1,950. Recently I have paid off two loans, so I was wondering how to get out of this overdraft and live permanently in the black!

My possibilities I suppose are:

1. Transfer banks and pay off Nationwide every month until £0
2. Transfer the debt to a credit card

What do you chaps think is the most sensible approach here?

Thanks very much.

Rob

1. why will it be easier to pay off the overdraft if you move banks?
in fact your OD interest will rise as the average OD balance will no longer benefit from your salary going it.

2. if you can get a 0% CC then that might help; however unless you clear the debt within the 0% promotional period then you will end up paying 25% APR or so

How much interest are you paying each month approximately?

only real solutions
up your income
and / or spend less

try budgeting properly
http://www.makesenseofcards.com/soacalc.html
post up the results on the
debt free wannabe board

if you have recently cleared two loans where is why isn't the spare money going to reduce the OD?

callum9999

Seagull_Rob wrote: »

I also have twins on the way.

To get more money, you either need to spend less or earn more. End of. There are NO other options.

In the meantime all you can do is try and minimise the interest you pay - like others have said, the only real option I can see is a long-term 0% credit card.

And having twins is no reason not to economise (no matter how much your natural instincts may be to do the opposite!). While babies can very easily become very expensive, if you are disciplined there is no reason why you can't bring them up on a small budget - we've been having babies for millennia, they can get by without expensive clothes, prams etc.!

Seagull_Rob

Very much appreciate your advice, everyone!!