Bank Overdraft - Best Methods For Paying Off?

Bagmouss

Hi

Can i get some advice on the best method to get rid of a £3000 bank Overdraft?

Would it be a low APR loan, a low % Credit Card or other method?

Can you count an Overdraft as being applicable for a Balance Transfer onto a 0% card?

Any help would be appreciated

Thanks

Dan

simeyb

LOL - do what I did and leave it until the bank decided enough was enough and now its on a reducing balance each month - killing me for the next 12 months but at least it will be gone.

Seriously though, I really wouldn't take out any credit to pay back an overdraft as you could well end up with no overdraft (and the temptation may still be there to use it again) and a debt which might start low interest, but will unlikely get repaid by you quickly enough. What I would suggest is seeing if you can agree with your bank a staged reduction in your overdraft facility - one which is manageable for you, will mean you reduce your overdraft without further borrowing and one which should appeal to your bank

Cycrow

How much is the overdraft currently costing you ?
and what are you incoming/outgoings.

Most balance transfer cards wont work for overdrafts, althou you might be able to get some that can

Tixy

How much can you afford a month towards reducing the debt? how much does the o/d cost you? either APR or monthly charges?

A few cards offer money transfers that allow you to transfer money in to your bank account, mostly those backed by MBNA..

sugarplum10

i would reduce it by a certain amount each month- say £1-200 so next month the limit is £2800 etc until you have no overdraft left! simples.
well i say simples, it requires much will power but i found that was the best way to get rid of mine.

ValHaller

Bagmouss wrote: »

Hi

Can i get some advice on the best method to get rid of a £3000 bank Overdraft?

Would it be a low APR loan, a low % Credit Card or other method?

Pay it down from income. Do this as a first priority over clearing any other debt.

mwa

Like someone else said, pay it off a certain amount each month I.e.£100 but MAKE SURE you phone the bank and get them to reduce your overdraft facility amount in line with your reduced outstanding amount otherwise it is too easy to just blow it again. This is how I have cleared my 2k overdraft.

WifeandMummy

This is my current aim too - I have been putting money aside and when I reach £500 I am going to phone up and decrease the OD with it and then start saving again. Not sure who you bank with but ive heard various dif things from others on here when I posted a similar thread, some banks only allow you to reduce it x amount of times in a certain time period, other banks also consider your reduction as an application for a new OD, some with automatically reduce it for you each month if you set a DD up however some won't - might be worth trying to find out what their procedures are. I'm with Halifax and have been told I can just reduce it each month xx

allybee101

I'm doing a similar thing. I bank with Ntwst and they do a credit check when you change your overdraft limit (increase and decrease) so I am tackling mine in chunks. I'm saving in a separate account and then will pay off £500, for example, and reduce my limit by that amount. It is tough, but you can do it.
Don't take out another loan to pay it - robbing Peter to pay Paul.

homelovin

Hi, I'm slowly doing the same thing by putting 50 quid in my online savings each payday. I'm transfering and reducing my overdraft when it gets to 200 though because I wanted to see progress! I just have it down as one of my 'bills' each month to make me do it. I have no will power.

Bagmouss

Thanks for all the advice.

I have been putting money aside each month for a holiday, now that has been paid i might as well keep putting this money aside to use to pay off the overdraft then. wont really miss it then. It was just the interest of the O/D & Fee compared to getting rid of it in one go via a cheaper finance method but i think i will do the long will power haul of reducing it bit by bit and it then should finally disappear.

Thanks again all, much appreciated