How do I turn a £6k OD into somethign more manageable?

daviesal

I followed the money transfer details on the MSE site but it said that I was not eligeable. What else can I do?
I have £6k overdraft which is at its limit and £1k on a credit card.
HELP! :-(

Tixy

Have you worked out how much you can afford to repay to these debts a month?

What APRs are you paying on the debts currently?

daviesal

I pay about £50 a month interest

daviesal

The credit card I usually pay off in full each month but this month I think I will not be able to . Maybe ony half. APR I dont know its a patinum visa barclaycard.

Tixy

Even if you could move the £6k overdraft to a credit card the minimum payment would be more than £50 a month.
How much can you afford to pay towards this debt in total a month to actually start reducing the balance?

What is the APR on the overdraft? If you don't know what the APR is then you won't know if trying to shift it somewhere else will save you money or not.

dresdendave

"How do I turn a £6k OD into somethign more manageable?".....
By reducing it!

Trying to transfer the debt elsewhere might be a short term benefit but for a long term solution you need to tackle how you have managed to spend £6000+ of someone else's money. Serious belt tightening is required and use the savings to increase the repayments.

Spend less and pay back more might seem an old fashioned approach but it how you can reduce the amount owed rather than just moving it to a different lender. Those helpful people on the DFW board can give you great advice on how to reduce your spending.

daviesal

Tixy wrote: »

Even if you could move the £6k overdraft to a credit card the minimum payment would be more than £50 a month.
How much can you afford to pay towards this debt in total a month to actually start reducing the balance?

What is the APR on the overdraft? If you don't know what the APR is then you won't know if trying to shift it somewhere else will save you money or not.

I can pay £100 a month. I just want to not be paying a fee even if it is as little as £50.

Nebulous2

daviesal wrote: »

I can pay £100 a month. I just want to not be paying a fee even if it is as little as £50.

I think this is an indication of where you're going wrong. It isn't 'as little as £50.'

£50 is a lot of money. It is £600 a year, or 10% of your overdraft!

CLAPTON

you need to know and understand what APR or OD fees you are paying as there is no point in moving your debts around unless you end up paying less interest/fees

however, to reduce the debt you need to pay more towards the debt each month : even if you paid no interest, paying 100 pm towards a 6,000 debt will take 5 years to clear


so you need to increase income and/or decrease spending otherwise you will be in debt for ever.