Pay off overdraft and Credit Card...

ilikeunicorns

Hi I am not in a huge amount of debt but I would really like to clear these before they spiral into things much bigger! Just looking for advice on what would be the best way to clear these ASAP?

I have a Graduate account with RBS, however my interest free overdraft is due to end next month. RBS have told me I will now be charged for having an overdraft and plus interest on top of that! It is only for £350 so not a huge amount. I am always -£340 at least by the end of the month.

I also have a Capital One credit card with a limit of £500. I pay £50.00 on this every month but always end up using that £50.00 again towards the end of the month.

Ideally I would like to pay off the overdraft and the credit card ASAP with something that I can pay £50 a month towards and cannot access, if that makes sense? Please help I do not have very much disposable income, and my credit rating isn't excellent.

19lottie82

First off try filling out an SOA

http://www.stoozing.com/calculator/soa.php

Then people can advise how you can save money / cut back, and use this cash towards paying off your debts.

Tixy

Hi

If you are currently reusing the £50 you pay off each month then it doesn't sound like you currently can afford £50 a month towards your debts.

As suggested a good starting point is a Statement of affairs to see where you may be able to make some changes and to see how much you can actually afford towards your debts each month.

Jordo

When you get paid, phone the bank and reduce your overdraft limit by how much you can afford, £50/£100, until it is zero.

Same with your credit card, overpay what you can afford

Good luck!