One Question - Overdraft

Lucy1982_2

Hi Guys

Just wanted some opinions and advice really.

I have an Overdraft which is currently sitting at about £416. I have £69 waiting to be transfered over from Amazon on Monday (say a week to arrive) the £80 from my sig has already been transfered.

Now I am paying a small amount of interest was charge £3.30 this month (I've never been charged enough to reclaim)

But I am not sure how best to tackle it. Again as you can see from my sig I have other debts, the Store card has to go it has an APR of 24.9%!! :eek: I don't know what possessed me!!!

Now I know other people have said they opened other accounts, but I like my bank and don't want to switch. All of the account I think are worth having want you to put in at least £1000 each month. I wont be doing this, perhaps spending money but nothing else.

Really my question is this:

Am I approaching my OD in the right way by paying off at least £50 (more when it's available) and concentrating on my store card?

Or should I try opening another account somewhere else, but I would really rather leave my payments in my original account (I bank with Lloyds by the way) and still concentrating on the Store card. Once this has gone I'll have some more money to play with.

I get paid on the 20th and would really like to have an action plan sorted by then.

Be gentle and do your worst!!!

southernscouser

I signed up to A&L via Quidco. Got £50 cashback, and a £500 overdraft, 0% for 12 months. You need to pay in £500 a month but I simply transfer it from my main bank account, then when it's cleared transfer it back.

Check the referrers board aswell coz I think that offer is back on which is another £50!

Lucy1982_2

That would work, wouldn't

How really dumb question. I've only ever had one account. Is it easy to do online transfers from bank to bank or do you need to go in and pay cash over the counter?

southernscouser

Lucy1982 wrote: »

That would work, wouldn't

How really dumb question. I've only ever had one account. Is it easy to do online transfers from bank to bank or do you need to go in and pay cash over the counter?

I just do online transactions. You can have the money back into your proper account within about 7 or 8 working days.

Plus you can make £100, minimum of £50.

southernscouser

I can recommend Michelle to refer you.

http://forums.moneysavingexpert.com/showpost.html?p=5349256&postcount=562

Tell her I sent you!

Lucy1982_2

Right I am going to bite the bullet and give it a go.

I'll let you know how I get on.

Lucy1982_2

Right I have just gone through the online application so just got to wait now and see if they accept me. I'll let you know how I get on.

Hopefully if I have an account that I only have spending money in I'll be ok.

Lucy1982_2

How cool is that just had an email from A and L and I have been accepted!!! Should get my 'Welcome' pack in the next couple of days!!!

Yea! for me!!

Now the question is what to do with it. Shall I just use it for my spending money and leave all my direct debits with my Lloyds account or should I transfer my Amazon money into is as well, because the interest is bigger?

Oh the possibilities!

southernscouser

I'd use it to get your current overdraft at 0%! You've got 12 months to pay it off. Just make sure you do.

Lucy1982_2

I will do, don;t you worry. I'm so excited, it's got the better of me. Sensible head has just landed again!

Still have to see what OD they give me, but anything will be better than what I am stuck with at the moment. So what did you do the first month? Transfer the £500 over and then transfer enough back to cover that and the OD? I can be really thick sometimes (read most of the time!!!).

I guess so long as you transfer the £500 each month and pay some off the OD they can't do anything can they.


I can't wait until pay day now start getting things in place

SunderlandBlackCat

Lucy1982 wrote: »

Now the question is what to do with it. Shall I just use it for my spending money and leave all my direct debits with my Lloyds account or should I transfer my Amazon money into is as well, because the interest is bigger?

Your signature doesn't say what the APR is for your present overdraft but as its most likely less than the store card, I'd use the 0% overdraft to pay off the card thats charging you 24.9%. & a litle bit of your current overdraft. The interest you'd save there will help to speed up getting the present overdraft down quicker.
If you know what all the APR's are & how much you can afford to pay off them each month enter the details in to the snowball calculator at www.whatsthecost.co.uk/snowball.aspx & that will show you how much to pay off each debt each month to minimise the amount of interest you pay & speed up your debt free date.