Getting out of my Student Overdraft

PollyOnAMission

How is your credit rating? Is it likely you would be accepted for a 0% on purchases credit card?

I was in a similar situation to you at the start of the year, although my overdraft was slightly smaller. The first thing I did was to draw up a proper budget, found ways to save money (switching bills etc) and start living within my means. I now keep a spending diary of every penny I spend (I use an app on my phone so it's not too tedious) and it REALLY helped me see where my money was going. My plan of action was a little more complex than I'm going to describe because it also involved some 0% Balance Transfer credit cards and a cashback credit card but I'll leave those out for your situation.

Once I had my budget I stuck to it, but also took out a credit card that had 0% on purchases for 22 months. I did all possible spending on this card (still keeping within budget of course) rather than with my current account. After a few months I'd managed to work my way out of my overdraft and had a balance on the credit card.

I then divided the card balance by the number of remaining 0% months, and set up a direct debit to pay this amount each month. Thanks to my budget this was affordable. I then stopped using the card.

I now keep within my budget, meaning my debt is being paid off at 0% and I'm not getting in to further debt.

Is this something you could do?

I should add that it also sounds worth your while switching to a graduate account with better overdarft terms first. £3 per day is a big charge!

KellyWellyWoo

Have a look at the national debtline and see if they can help -don't pay somebody to take on your debt when there are others who can do it or help you for free.