credit card or loan

lemumbo

Hi,
I have a £600 agreed overdraft on my barclays bank account and go to the limit every month -but I would like to stop using it - I think I can if I clear it once!
Also, our son marries soon and we think we will be needing to pay about £3500 towards the wedding -but that might be by giving our share in cash to his future inlaws.
I am 60, employed part time with annual income of about 26,000
Can any one advise me which is the best way to finance both of these needs?
thanks

Tixy

How much are you going to be able to afford to repay a month to these debts?

longtermplanner

Taking out a loan to clear the overdraft isn't 'clearing debt' it's reshuffling it.

You need to have an serious look at your finances and where you can cut back some of your spending before you agree to five your son £3,500 that you don't own for a wedding. better to be honest with him now. Would he want you to get into debt for this?

lemumbo

I expect to pay back about £200 a month.
I understand the comment about My son's wedding - but it has already been planned and booked - and it's not his fault that he's our 4th child; after all, we have paid/shared in cost of weddings for our other three children.
As a lot of the payments we will need to make, will probably be in cash or bank transfer, I think that a loan might be the best option - but I am not sure.

Tixy

If you have worked out you can afford £200 a month has your overdraft been reducing by around this amount each month over the last few months?

Cost wise I doubt it would be worth moving the overdraft anywhere, surely you can just clear it in 3months by keeping an eye on your spending/budgeting.

Regarding the money for son's wedding - the obvious options are either a personal loan or a credit card that allows super balance transfers with a 0% deal. http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

Obviously your chance of acceptance for either of these options would depend on your financial circumstances and credit history.

Ed-P

I would recommend getting a credit card, I always try to stir clear of loans. If you look around the internet there are hundreds of articles and tips on how to save money. It sounds like you will need to cut back on spending for a bit. Once you take out a credit card or loan, the money saving tips will help you to stop it spiralling out of control and help you to pay it off.

If you're sensible, you will be ok. It's just not a good idea to get into debt when you're 60 as it can get quite stressful.