paying off my overdraft

ontheroad89

Hi i'm looking for any advice about the best way to pay off my debts, i have a £3000 overdraft from when i was a student (graduated a year now) that i'm now being charged £2.00 a day on. I have been for a year even though it was supposed to be a year from graduating, i ended up graduating 5 years after starting not the usual four after taking a semester off and doing an extra semester of classes as i changed my degree fairly late.

On top of this i have a £1000 credit card maxed out that i make the minimum repayment on each month.

I use another account as my actual bank account which is virtually at its overdraft limit of 1500 but is interest free for another year, reducing to 1000, then another year before reducing to 0.

I havent made any progress in the past year towards paying off these debts, obviously the first two being the most pressing, i don't know the best way to go about clearing them. Would a loan be a good idea? To be honest i don't think i would be able to get one large enough to pay off the £3000 which is what is most damaging at the moment.

I earn around £220 a week and don't have many outgoings other than paying interest on the credit card and overdraft, plus my phone bill.

I wasn't sure either i f contacting my bank to discuss the fact i was meant to have started paying interest a year after i graduated would help, that date has come now but due to my circumstances changing while i was at university my graduation came a year later than expected so instead i was paying over £60 a month for a year that i wasn't expecting in the first year after graduating.

Thanks for any help or advice given.

Tixy

Hi and welcome

First I would suggest you work out how much you can afford to put to the debts a month - make sure you budget for anything else you need to pay out, not just your phone but if you have to pay out for food, travel, haircuts etc (It sounds like you are living rent free currently).

Once you know how much you can afford to the debts each month then you can decide how best to use it to the debts.

What are the interest rates on the credit card and the overdraft on the account you use daily?

The large overdraft won't have an APR but you can work out a comparison based on how much you pay in charges compared to the balance and then work out which to focus on paying off first.