Really need some advice

hgm127

Hello everyone,

I am in a bit of a pickle with my finances this month.

Since leaving University I have existed within my overdraft (£2000) which I hope to start paying off soon (it's still interest free). Just mentioning that as it is unfortunately not possible for me to go further into my OD as it is maxed.

This month is unusual in that I will actually be having more money debited from my account than there is coming in. (direct debits/utilities etc)

I have a credit card with a limit of £1250 (Lloyds Platinum). If I could transfer around £200 of this to my debit card, I would be ok for the month. I wouldn't need to spend anything off my credit card on top of that and could afford to pay that in full when my next pay cheque comes in.

Does anyone know if this is possible? Obviously I don't want to do a straight cash withdrawal as I know this is bad news. Any help would be most gratefully received!

Tixy

Lloyds don't allow money transfers (where you transfer money from the cc to your current account).

Is there none of the spending that would come out of your bank account that you could instead pay for by credit card?

If not then a cash withdrawal could potentially still be cheaper than exceeding your overdraft/having DDs bounce (depending on the fees involved for both options).

Aquamania

hgm127 wrote: »

Hello everyone,

I am in a bit of a pickle with my finances this month.

Since leaving University I have existed within my overdraft (£2000) which I hope to start paying off soon (it's still interest free). Just mentioning that as it is unfortunately not possible for me to go further into my OD as it is maxed.

This month is unusual in that I will actually be having more money debited from my account than there is coming in. (direct debits/utilities etc)

I have a credit card with a limit of £1250 (Lloyds Platinum). If I could transfer around £200 of this to my debit card, I would be ok for the month. I wouldn't need to spend anything off my credit card on top of that and could afford to pay that in full when my next pay cheque comes in.

Does anyone know if this is possible? Obviously I don't want to do a straight cash withdrawal as I know this is bad news. Any help would be most gratefully received!

If you have benn living in your OD comfortable for some time, and have plans to pay it off soon anyway, then talk to your bank.
I'm sure they will listen to your reasons for needing in a little more money this month, and with the evidence you will soon be able to repay everything, then they will probably give positice consideration to perhaps raising your overdraft limit (perhaps on a tempoaray basis) or even arranging a loan which may be cheaper than the overdraft anyway.

Good luck

(Borrowing on a credit card to fund essential day to day living is the first sign of decending that long and very slippery slope)

hgm127

Tixy wrote: »

Is there none of the spending that would come out of your bank account that you could instead pay for by credit card?

Hi Tixy,

Ideally I would do this instead - although not sure how I could arrange it - it's mostly DD's, although some are PayPal payments which come out as Direct Debits too.

hgm127

Aquamania wrote: »

If you have benn living in your OD comfortable for some time, and have plans to pay it off soon anyway, then talk to your bank.
I'm sure they will listen to your reasons for needing in a little more money this month, and with the evidence you will soon be able to repay everything, then they will probably give positice consideration to perhaps raising your overdraft limit (perhaps on a tempoaray basis) or even arranging a loan which may be cheaper than the overdraft anyway.

Good luck

(Borrowing on a credit card to fund essential day to day living is the first sign of decending that long and very slippery slope)

Thank you Aqua, I could definitely chat to them about it. I am determined not to hit the slippery slope!

CLAPTON

if you can definitely pay off the amount next month, then cash withdrawal on the CC is the least risky option

whilst talking to banks is often said to be a good thing, there are many tales where it brings awful results

hgm127

thank you Clapton, will the interest on this be horrendous? I have been warned off taking any cash out at all.

Tixy

It depends what your cash advance APR is.

But say its 25% APR and you withdraw £200 and pay it 30 days later - the interest on that would be around £5 plus you'd probably pay a cash withdrawal fee at the machine of a couple of quid.

CLAPTON

hgm127 wrote: »

thank you Clapton, will the interest on this be horrendous? I have been warned off taking any cash out at all.

what is your cash APR?
what is the cash fee

but assuming say APR of 25%
and a 3% fee

then for 200 cash withdrawal

fee = 3% of 200 = £6
interest for one month = 200 x 25% /12 = £4.16 per month

facts are better than rumours

Insomniscene

I wouldn't recommend talking to the bank in regards to the interest free overdraft - depending on how long it is since you left university, they may start charging you for the overdraft.

I went to my bank simply to change my address (first proper chat to the bank aside from paying in/withdrawing money) and they clocked on and I'm now paying for mine.

Was nice while it lasted, however.

Stereo

How is your credit? I'm assuming it's alright as you have an overdraft and a Lloyds Platinum card. Try applying for a card which allows money transfers in to your bank:


http://uk.virginmoney.com/virgin/credit-cards-v3/