Clearaccount

bourne33

Hi all hope you well today?
Just want to run something by you all.
I have a Clear account er account set up and want to pay it off on full and just have it as back up. I also have a credit card with Vanquis which only has a small limit on it.
If I was to pay off the credit card and clear account together should I then ditch the clearaccount facility. Or would you rather pay of the credit card.
If any one unsure about clear account basically they prevent overdraft charges by topping up account when it goes over your limit and you only pay £1 daily charge per £100 you go over so if it below £100 you don't pay anything so it handy to have as you can also withdraw cash on tap if you need it.
Personally I'd rather pay both of but keep credit card for backup instead bit id like you opinions too on this
I'm obviously willing to get rid of both but on a low income it handy to have something as back up.
Thanks in advance
Steve b

Tixy

If both are fully paid off I would keep a credit card for an emergency facility. Because providing you can repay in full within a month then you would pay nothing in interest.

That assumes that you are fully aware of what is in your bank at all times and ensure that you do not exceed your facility.

bourne33

Thanks I think I'll ditch the clearaccount as don't really need it.

Lensman_2

bourne33 wrote: »

Thanks I think I'll ditch the clearaccount as don't really need it.

Good call. £1 a day per £100 is 37.7% APR.

Lensman_2

I just worked this out properly. It isn't 37.7%.

If you went overdrawn by £100 on the 1st of Jan.
They add £1 each day until it reaches £200.
Then they add £2 each day. Until it reaches £300. Then they add £3 a day....
And so on for a year.
By the end of that year you will owe... £2171. And they are adding £21 a day.
Shocking.

Unlikely, but even if they don't increase the premium but stick to £1 a day for the whole year, that is £365 on a £100 overdraft. 365% APR.