Overdraft or Creditcard

MeOhMy

I have an overdraft of £1100, for 2yrs and a £900 (last six months) on my credit card with the same bank. I have £300 now, thou I can share it in two, but I'm thinking which one is important and pay all £300 to that.

Actually I took an overdraft of £1200 three years ago.

opinions4u

What rate of interest do you pay for your overdraft?

And your credit card?

Are there any other fees (e.g. monthly overdraft fee)?

Cycrow

like with any debt, pay of the most expensive first.

find out the rates for both the overdraft and credit card to know which to pay off

StuC75

Pay which ever is costing you the most to maintain. managing the overdraft better is likely to be better on the credit file.

Also how likely are you to run up the debt again? if you pay it off the overdraft are you likely to spend it again?

Use it as the proverbial lightbulb moment and check how income & spending can be better aligned.. Overdraft and Credit Card just screams out living beyond means...

MeOhMy

Thanks all for your contributions.
The overdraft is 14 or 15% apr and the credit card is 22.6%. I’m thinking if there is a time limit to how long I can have the overdraft so high.

Maestro.

I would still pay off the OD sooner. You have more on the overdraft, and ODs are something which the bank can ask you to pay off at any time. A credit card is actually designed for stretching payments, whereas an OD is just an emergency short term borrowing facility.

bengalknights

Pay the one with highest interest rate off first