Clearing Halifax overdraft

Tin_3

Hi,

Was just wondering if anyone could offer some advice on the best way to clear my halifax overdraft.

I currently have an overdraft of £1500, and am constantly near the limit of my overdraft. My wage clears a big chunk each month, but with bills and cost of living this takes it back toward the limt each month. Once its cleared i'll be fine, itwsnt through overspending, only reason it accrued is because whilst with my ex she lost her job so had to cover 2 lots of bills.

The trouble Im having is the way halifax charges for its overdrafts. Currently, they charge £1 for each day Im im my overdraft. As most of the month I'm a lot lowrr than my 1500 limit, only near it toward the end of the month, in comparison to a % based scheme this is costing me a hell of a lot. Even if I was only £1 into my O/D it would still cost me £31 per month! Due to this, even budgeting to leave say 50-100 in each month to help reduce the balance is going to be very expensive.

Whats the best way to go? Maybe a credit card with 0% transfer? If so can any be recommended?

guesswho2000

Tin wrote: »

Hi,

Was just wondering if anyone could offer some advice on the best way to clear my halifax overdraft.

I currently have an overdraft of £1500, and am constantly near the limit of my overdraft. My wage clears a big chunk each month, but with bills and cost of living this takes it back toward the limt each month. Once its cleared i'll be fine, itwsnt through overspending, only reason it accrued is because whilst with my ex she lost her job so had to cover 2 lots of bills.

The trouble Im having is the way halifax charges for its overdrafts. Currently, they charge £1 for each day Im im my overdraft. As most of the month I'm a lot lowrr than my 1500 limit, only near it toward the end of the month, in comparison to a % based scheme this is costing me a hell of a lot. Even if I was only £1 into my O/D it would still cost me £31 per month! Due to this, even budgeting to leave say 50-100 in each month to help reduce the balance is going to be very expensive.

Whats the best way to go? Maybe a credit card with 0% transfer? If so can any be recommended?

MBNA are offering 23 months 0% on their Platinum Visa card at the moment, which includes money transfers. Charges a 4% fee, so £60, which means after two months you'll be better off than using the Halifax OD.

If you go down that route, remember to reduce the OD limit in order to remove the temptation to spend again and end up in a worse situation than before! :beer:

BugsyBrowne

Tin wrote: »

Hi,

Was just wondering if anyone could offer some advice on the best way to clear my halifax overdraft.

I currently have an overdraft of £1500, and am constantly near the limit of my overdraft. My wage clears a big chunk each month, but with bills and cost of living this takes it back toward the limt each month. Once its cleared i'll be fine, itwsnt through overspending, only reason it accrued is because whilst with my ex she lost her job so had to cover 2 lots of bills.

The trouble Im having is the way halifax charges for its overdrafts. Currently, they charge £1 for each day Im im my overdraft. As most of the month I'm a lot lowrr than my 1500 limit, only near it toward the end of the month, in comparison to a % based scheme this is costing me a hell of a lot. Even if I was only £1 into my O/D it would still cost me £31 per month! Due to this, even budgeting to leave say 50-100 in each month to help reduce the balance is going to be very expensive.

Whats the best way to go? Maybe a credit card with 0% transfer? If so can any be recommended?

What I would do is get a 0% on spending credit card then use this card for everything and forget you even have a bank account and keep using your 0% card until the overdraft is cleared.

rb10

BugsyBrowne wrote: »

What I would do is get a 0% on spending credit card then use this card for everything and forget you even have a bank account and keep using your 0% card until the overdraft is cleared.

Yes, but don't forget about the bank account!

By using a 0% for spending card, you can focus initially on clearing the overdraft. Then you need to ensure you're able to pay off the credit card, ideally before the 0% finishes.

You will need to cut back on bills to do this. Look at your broadband, TV package, car/travel expenses, holidays, nights out, food shopping etc, and budget carefully. Posting on the Debt Free Wannabee board of these forums is likely to be a useful way of helping to work out where you can cut your expenses back.