Overdraft Advice

Rickb

Hi ppl,

Great site but I could do with some advice on the best way to deal with an overdraft.

It's actually my partners overdraft which she accumulated while at university. The interest has been increasing the total to the point where its reaching its limit and threatens to impose penalties etc.

She's having trouble paying off more than the interest.

We're looking for a way of reducing the interest so that the payments she makes will actually make a difference.

She has been in the banks to see if a balance transfer would work on a credit card but apparently thats not possible, it counts as a 'cash advance' which has horrible interest on it.

She has done the credit check on this site to she which loans she qualifies for and again the interest is not much different.

Can anyone offer any advice on methods to reduce the interest?

I think the amount is £1,500.

Thanks in advance.

Rick

CLAPTON

if she is having difficulty paying even the minimum amount each month suggest she comes here and posts her SOA so we can see the full financial picture

Rickb

I'll direct her to this but I think the problem is the minimum payment is making no difference to the overall balance.

kathfisch

Rickb wrote: »

I'll direct her to this but I think the problem is the minimum payment is making no difference to the overall balance.

Well she needs to find a way to make more than the minimum payment. Posting her details is suggested so that we can see the full picture and help to see areas where savings could be made. In the long run tackling her outgoings and/or increasing income will be much more beneficial than just reducing the interest (although she should obviously do that too if she can!). £1500 is a significant sum and if she wants to be rid of it she needs to look at all areas of her finances and devise a budget that she can stick to, which includes a reasonable payment that will eventually clear the balance... steering clear of the minimum payments trap!

Good luck!