Clearing Bank Overdraft

Kimberley

I have taken out a 0% long APR credit Card to pay my debts off after doing balance transfers so now I can clear the debt off without paying interest. The one thing that I can't seem to get out off is my Overdraft. I was thinking of paying it via the money transfer offer from my new 0% credit card but how do I stop going back into the overdraft?

Do I use one of my old credit cards for spending on so that I don't spend anything from my bank account to keep it in the black?

~Beanie~

Once you have cleared the overdraft, can't you ask your Bank to cancel it? If it isn't there, you can't use it!

Or you could keep better track of what money you have available and make sure you only spend this and don't use your overdraft.

Kimberley

The thing is I'm always in the red but I think that's because I don't budget enough so I want to keep the overdraft facility until I've been in the black for 3 months running before I cancel it to ensure I don't need it anymore. I would prefer to spend for shopping etc in another way and just leave my current account for the bills and wages going in.

ShirePiskie

Hi. I would do a proper budget for yourself - and stick to it.

Cancel your old card that you transferred the balance off. It might be worth looking to see if you can get an interest free on purchases card for a little while, paying off all you can a month with a plan to clear it and stop relying on it?

It seems like a few months pruning right back on spending could set you right (depending on how much OD you use)... Budget, plan, prepare and budget again and stay with it.. I've been terrible for 'just dipping' into credit available here and there and before I knew it a cleared card was maxed out again.

Look at old statements for your spending patterns to do a realistic budget- From your signature it looks like you have a really amazing goal to work towards, try and picture that every time you open your wallet/ purse.

Good luck.

Kimberley

Yeah, I do waste a lot, so do you think I shouldn't use the money transfer offer to clear the overdraft? I want to pay £500 a month towards paying the new card off, this should take 10 months. Will start a spending diary from today to see where my money goes.

Pixie5740

I think if you clear off your overdraft using the card you'll just end up back in your overdraft but owing twice as much this time. Keeping a spending diary is a good idea so you can find out where your money goes and can then make a realistic budget to stick to.