overdraft

czabby

not sure this is the right forum..but i have got in a situation where i have to use my allowed overdraft most months(about5-600) and with the mortgage,bills,etc its a little hard clawing it bakc quickly..im a bit reluctant to take out a loan to cover and ideally woukld like to manage it so there are no monthly fees on the o/d each month..does anyone have any suggestions about ingenious solutions to mix and match..maybe cards,etc...cheers

CLAPTON

what fees and charges are there on your current OD?
without knowing that its a bit hard to see how to reduce the costs

YorkshireBoy

czabby wrote: »

i have got in a situation

Is this "situation" likely to improve anytime soon, or is it more long term?

pinkdalek

Don't forget overdrafts have no term on them, any bank can withdraw/reduce your overdraft on demand which may not help you if you are constantly in it. An overdraft ideally is a short term fix to help you before payday or if your salary is delayed etc.

Seriously consider a loan, go through your budget and see if there is anything you can cut back on or other debt you can consolidate.

czabby

charges are £6 a month..its with lloyds...im hoping it is short term but life with 2 kids gets in the way!!!

YorkshireBoy

czabby wrote: »

charges are £6 a month..its with lloyds...

Not a significant amount then, compared to some accounts, eg £1 per day with Halifax.

Reason I asked about how long you expect to be in this situation is that, if it's fairly short term eg a few months, maybe a 0% on purchases credit card would help.

Then again, a money transfer from an MBNA credit card would cost you 4% (so £24 on your £600)...but this would give you circa 20 months 0% and plenty of time to repay it. Obviously if your situation is likely to improve anytime soon (4 months or so) then this wouldn't be the best option.