paying off overdraft

mg89

I have an overdraft of 3000, I have had to move out of parents house and now live with my girlfriend and her 2 children. I need any help/advice as to the best way of paying this off as money is tight at this point in time. I'm told different things from different people but would like the advice of an expert or a person who is in a similar situation to me. Thank you

Caz3121

Do a SOA to identify all your income and outgoings each month and see how much you would be able to reduce the overdraft each month and how long it would take to clear it.
If you were thinking of borrowing to pay it off it is rarely a good idea as it is transferring the debt somewhere else. Unless your credit is very good and you can get a loan at a much cheaper rate than you are paying for your overdraft
You could start with this thread https://forums.moneysavingexpert.com/discussion/562271

chrisfreelander54

I would suggest getting a super balance transfer credit cards @ 0% for a long as possible time period, and simply tranfer the money from the CC to your bank and use this to clear your OD.

I did this using a virgin 26 months @ 0% SBT CC which I used to clear my overdraft as this had the highest interest rate of all of my debts, not only that but the bank can withdraw a OD at anytime, leaving you in a right mess.

The fee for using a SBT CC is normall 4% which compared to the interest charged for using an overdraft plus monthly usage fees is minimal in comparison.

HTH
Chris