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What should I pay?
RC_46
Posts: 24 Forumite
Hi all.
I applied for a loan to pay off two very bad credit cards, a catalogue, an overdraft and a store card in my husband's name, but the debt belonging to me.
I went through a credit union as they seemed the best bet. They refused the loan but offered a slightly lesser amount, paying the credit cards and the catalogue directly and depositing the money to cover my overdraft into my account.
My overdraft is £800 and is only costing me £20 a month; whereas the minimum payment on the store card (£1500) is approx £140 a month and roughly £38 a month interest.
I am wondering whether I am better off using the £800 to take a chunk off the store card and using some of my newly freed up cash to make larger (in proportion to the new balance) monthly payments (£100 and husb has said he will help with £50) - taking approx 5 months to clear, and then reducing my overdraft by £100 each month.
The thing is, I am worried whether I will be in breach of anything not using the money as claimed/intended. Can they do a credit report without my permission or contact the bank/request a statement to check I have cleared my overdraft? I do think using the money to reduce the store card makes more sense in the long run. I would be grateful for your advice.
I applied for a loan to pay off two very bad credit cards, a catalogue, an overdraft and a store card in my husband's name, but the debt belonging to me.
I went through a credit union as they seemed the best bet. They refused the loan but offered a slightly lesser amount, paying the credit cards and the catalogue directly and depositing the money to cover my overdraft into my account.
My overdraft is £800 and is only costing me £20 a month; whereas the minimum payment on the store card (£1500) is approx £140 a month and roughly £38 a month interest.
I am wondering whether I am better off using the £800 to take a chunk off the store card and using some of my newly freed up cash to make larger (in proportion to the new balance) monthly payments (£100 and husb has said he will help with £50) - taking approx 5 months to clear, and then reducing my overdraft by £100 each month.
The thing is, I am worried whether I will be in breach of anything not using the money as claimed/intended. Can they do a credit report without my permission or contact the bank/request a statement to check I have cleared my overdraft? I do think using the money to reduce the store card makes more sense in the long run. I would be grateful for your advice.
0
Comments
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Why not run it all through the Snowball Calculator?0
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Thanks, but this is my main concern:
The thing is, I am worried whether I will be in breach of anything not using the money as claimed/intended. Can they do a credit report without my permission or contact the bank/request a statement to check I have cleared my overdraft? I do think using the money to reduce the store card makes more sense in the long run. I would be grateful for your advice.
Can anyone advise on this please?0 -
Anyone? Anyone at all, please?!! ;-)0
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what does the agreeement that you've signed say?2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date0 -
It doesn't mention anything to do with how the money is used. It mainly stated that if I was out of work that the repayments would be deducted from any benefits that I claimed. I will dig it out and have another look but it was very basic.0
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