Wife versus Husband - The decision is yours!!!

spendingmad

Good Evening All

Had a blazing row with hubby this afternoon about money and we want your advise on what to do. OK situation is as follows, we have a credit card debt of £11,000 2.9% until November and a overdraft of £2000, 1st £1000 0% with account fee(£14.99 p/m) not sure what 2nd £1000 interest rate is (which by the end of the month is always at -£1999.99 or over) we recently had to cancel our holiday, DS broke his arm, so insurance company has put £1200 into our current account. I want to pay the £1200 insurance money straight off the credit card but DH wants to use it to pay off some of the overdraft.

We are due to renew our mortage in November and DH wants a nice healthly looking current account and hopefully a happier credit report by then, but my priority is to pay as much credit card debt off as possible.

Before you all say, they are both debt so reducing either is a good thing, I feel like if money is in the current account (eg money keeps coming out of the wall) then it will be spent and we will soon be back at -£2000 but with the credit card we have stopped spending on it so the debt will not increase.

Your opinions would be gratefully appreciated! and we promise to follow your majority verdict!

moneymaker2

is it that both overdrafts are -£1999 in total or just that the 2nd one is £1999. Cause if it is just the 1 then it is worth paying it off the 2nd overdraft to save you incurring any charges.
If it's not then it is best to find out how much the interest is on the overdraft and if it is more than 2.9% (Which it prob will be) then it is best to pay £1000 off this and then the other £200 off the credit card.
You will need to look also at how accessble they both are- if you have cut up the card then it would be more ''difficult'' to touch any of the money you have cleared off whereas you could keep re-dipping into the overdraft.

I hope this helps in some way.
L

Kaz2904

You need to find out which is worth the most money and if you do decide to pay it off the OD you need to get the bank to reduce the OD. Then focus on clearing the other debt. If you decide to get the od down then pay the other £200 off the cc. If you still can't agree then pay £600 off each.
Go to https://www.whatsthecost.co.uk/snoball.aspx

lynzpower

the 0% od is not 0% effectively, you pay 14.99 a month to get that.

I however, expect that the credit card will work out as more costly, so Id pay it off that if that is the case.

The interesting thing is that you say you have had account bounced- have you started claiming back these unlawful charges?

southernscouser

I'm with your husband on this one.

Because he is a man.

lynzpower

southernscouser wrote: »

I'm with your husband on this one.

Because he is a man.

:rotfl: Id think thats as good a reason as any to disagree :rotfl:

petetidball

I'd put it on the OD and then reduce the overdraft limit. I also agree with SS

LJD1_2

What does your credit card rate go to in November? I'd work out which is more expensive and pay that but be sure to bring the limit down on which ever you do pay some off. Good luck xx

spendingmad

Thanks SS for your truely objective opinion!!:T - i must admit now I am not in the mood to argue black is white I do see his point and that by being able to access a decent mortgage product we will have more money to pay of the credit card debts.

We are reclaiming bank charges with barclays they have until 13th July before we send 2nd letter.

If we pay it off the overdraft then we really have to make sure it is not dipped into again! Thats the hard part!

Thanks to everyone - hubby is happy to be winning ( will make him make his own pack lunch next week that will wipe the smile off his face:rotfl:)

meme_3

spendingmad wrote: »

Good Evening All


OK situation is as follows, we have a credit card debt of £11,000 2.9% until November and a overdraft of £2000, 1st £1000 0% with account fee(£14.99 p/m) not sure what 2nd £1000 interest rate is

How much interest do you pay each month for your overdraft - ie is it £1, £5 or £10 etc?

SarahNeedle1872

I'd go with paying the OD, but u should also consider switching to a fee free account, coz as Lynzpower says, ur OD isn't 0% if ur paying a fee... If my calcs are correct,£14.99 on a £2k OD is approx 7.5%...

Sarah x