One Question - Overdraft

southernscouser

Calm down dear. It's only a [STRIKE]commercial[/STRIKE] bank account.

Basically A&L require £500 a month to be paid into the account. So when you get paid transfer £500 to the account. When this has cleared, and assuming your overdraft is £400, transfer £100 back to your normal account. This means your normal account now should be overdraft free and your A&L balance will be -£400 but interest free for 12 months.

The following month, transfer £500 from your normal bank account to A&L. When it's cleared transfer £500 back to your normal account.

Just do this month after month.

When and how you pay off the 0% OD is up to you.

SunderlandBlackCat

Lucy1982 wrote: »

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

Basically as long as you transfer £500 in each month theres nothing to stop you transferring the whole £500 out again. you don't actually have to reduce the overdraft & while its still at 0% it makes more sense to reduce the debts that are charging you interest.

bandraoi

If the overdraft they give you is big enough you could just use it to pay off all your cards and have them at 0%.

Then treat your A&L like a very weird loan where you transfer £500 every month in and then transfer £500 - your repayment out again later.

Lucy1982_2

Cool! I'm very excitable!

I suppose the easiest way to do this would be to pay off my main account OD and transfer £500 across to A&L each month (on Payday) and £400 - £450 back into main account slowly pay off OD within timescale.

Will there be a problem taking what ever amount for my OD out of A&L before I've paid anything in? I know these are really stupid questions and you have the patience of a saint! (grovelling if you can't tell)

southernscouser

Lucy1982 wrote: »

I'm very excitable!

It shows! :cool:

SunderlandBlackCat

Lucy1982 wrote: »

I suppose the easiest way to do this would be to pay off my main account OD and transfer £500 across to A&L each month (on Payday) and £400 - £450 back into main account slowly pay off OD within timescale.

No - that extra £50 - £100 should be going on paying off debts that are charging you interest. that will get them cleared more quickly & once those debts are clear then you use the money you were paying off those to pay off bigger chunks of the 0% overdraft.

Lucy1982 wrote: »

Will there be a problem taking what ever amount for my OD out of A&L before I've paid anything in?

I went to within £50 of the overdraft limit to pay off other debts(left myself a small buffer zone) on the 1st day but didn't transfer money into the account until I got paid 3 weeks later & didn't get any complaints from them.

Lucy1982_2

Thanks for that. I suppose your right. I'm aiming to pay £100 a month off my store card so that should be gone in about 5 months (allowing for interest) that I'll still have 7 months to pay off my OD. Just at £100 a go min..... only 4 months!!

See there is no wonder I've got debts really. I'm just a bit scared of money now really.

Thanks guys.

I'll let you know when I get the paperwork through and how much of an OD I get. But it will be nice to see my money sitting my account instead of in my OD for once.

Thanks for helping the bank account virgin... I've only ever had one and my parents set it up when I was 4yrs old (ish)

lynsayjane

hey, not got time to read all the posts but just a wee warning about the A&L account, they only do an od matching service when you use their switching service to transfer all your direct debits. Otherwise you have to apply for one and wait a week or so for your results. I got mine anyway but just wanted to warn you x

Lucy1982_2

Ok I'll keep and eye out.

I requested and overdraft when I was going through the application so we shall see what happens.

I'll keep you posted.

Lucy1982_2

I just thought I would update this thread and say thanks to everyone that helped me the other day.

I got all of my paperwork through yesterday and A and L have given me a £450 overdraft which will cover my Lloyds one. I am still waiting for my debit card and cheque book so once these have arrived I will transfer then money into my Lloyds account and I then have a year to pay it off interest free. :j

Once again thanks for your help. Really looking forward to having credit in my account rather than negative numbers.

One day I will really have to come up with a way of repaying you all.

x