Credit Card Vs Loan to Clear overdraft and CC

Littlemadam83

Hi there,

I have been a nightmare, and am ashamed of myself tbh. But I need to deal with this head on before it spirals out of control.

I currently have an overdraft of £3500 in which I am constantly in the red, and also a credit card with about the same amount on. The account fee on the OD is obscene and for every £90 I pay off on the card I'm probably only paying £20/30 off.

SO....

I need to transfer the money and pay it off rather than pay the banks their fees as extortionately as they are.

Does anyone have advice on the best way forward? There is an MBNA card that will transfer overdrafts and is 0% for 17 months...or should I get a loan and pay if off over 5 years or something?

Any advice greatly appreciated as I just want to cry about it tbh, but know I have to deal now!!

Thanks in advance xxx

CLAPTON

how much can you afford to pay off each month?
what do your credit files say
what is your income

and your total debts are about 6k?

Littlemadam83

Hi Clapton,

I can afford to pay around £200 per month off, maybe more if needed.

Credit report is reasonably good, have been on a mortgage with another person for 2 years, and now it's just in my name, so not sure if that will make a difference. Am only paying about £380 a month for that.

Income is around £24,000, dependant on commission, live with a partner so we share the living costs.

Total debts are more like £7k

Thanks for asking the questions to help ascertain xxx

CLAPTON

even with no interest 7,000 at 200 pm will take 3 years to pay off and obviously more when interest / fees are added.


I would try the MBNA card first as you won't get a loan as cheap at the CC even though you will pay a 4% BT fee.
even if you don't get enough to transfer the full debt anything at 0% has to be a good thing

but basically you really need to consider paying more each month towards clearing the debt