Bank Overdraft - Best Methods For Paying Off?

Hudson1984

allybee101 wrote: »

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.

by saving in a seperate account are you not just paying more on interest? if that money was in your account with the overdraft you wouldn't be paying interest on that amount.

I'm doing the same and paying (planning) off £100 a month but being as my salary and expenses for work go through my current account the interest works out quite low

OneLife_OneShot

I was wondering about this myself for my OD. I rang my bank and they said I won't be credit checked I can just ring them up and reduce it by a minimum of £100 anytime I want to

allybee101

Hi Hudson, I tried that and it doesn't work for me . I don't have the right discipline.

I can 'reduce' it by about £300, but then I splurge because I can see plenty of available balance.
The bank does a credit check on both increases and decreases to overdraft limit so it's not ideal to ring up and reduce it a little each month.
I'm doing it in chunks of £500 rather than save up the whole £2700 and then pay it off.
Each time I pay off a chunk I will phone and reduce the limit so there's only 5 or 6 credit checks to do rather than 27.