I cant work out how to shift my overdraft debt

wibs

Hi

I have an approved LloydsTSB overdraft of £3300. I am at about £3000 by the end of each month and it is ofteen quite stressful as obvioulsy I dont want to go over teh limit

I pay aprox £20 per month in overdraft fee

I am paying approx £25 per month in overdraft fees to Lloyds

I would like to get a loan for £3k and wipe the debt out (ok transfer it) to give me peace of mind each month plus save the £25 per month.

I cant work out eh best way to do it. It seems like a loan for £3k would mean I would need to pay back £4k over 3-4 years or so.

I like the idea of a 0% balance transfer credit card but dont think I can get it for an overdraft as opposed to another credit card

Can anyone suggest the best way to proceed? I could pay back about £75 a month (which includes the £25 I'd be saving)

thanks clever people! :money:

YorkshireBoy

You can shift overdraft debt to a credit card...


http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs


...but it doesn't look like it'll be a good option for you as you're nudging the limit each and every month, despite it only costing you £25 (the MBNA card monthly payment from the article linked above will be more than that each month).


You need to address the root cause of your troubles...presumably you've already done all you can on the earn more/spend less front?

Gaz83

wibs wrote: »

Hi

I have an approved LloydsTSB overdraft of £3300. I am at about £3000 by the end of each month and it is ofteen quite stressful as obvioulsy I dont want to go over teh limit

I pay aprox £20 per month in overdraft fee

I am paying approx £25 per month in overdraft fees to Lloyds

I would like to get a loan for £3k and wipe the debt out (ok transfer it) to give me peace of mind each month plus save the £25 per month.

I cant work out eh best way to do it. It seems like a loan for £3k would mean I would need to pay back £4k over 3-4 years or so.

I like the idea of a 0% balance transfer credit card but dont think I can get it for an overdraft as opposed to another credit card

Can anyone suggest the best way to proceed? I could pay back about £75 a month (which includes the £25 I'd be saving)

thanks clever people! :money:

If you can pay £75 a month, are you currently paying this to the overdraft?

pvt

Don't want to sound harsh here, but if you're saying you end each month with the same level of overdraft as you start with, then the only way you're going to clear this debt is to either:

Earn more money; or
Spend less money

Getting a loan is a very bad idea, because you will then have the overdraft to fall back on, and pretty soon you'll be here asking how to clear £6k of debt.

Try the debt-free wannabe board for advice on how to do the latter of those two options.

wibs

YorkshireBoy wrote: »

You can shift overdraft debt to a credit card...


http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs


...but it doesn't look like it'll be a good option for you as you're nudging the limit each and every month, despite it only costing you £25 (the MBNA card monthly payment from the article linked above will be more than that each month).


You need to address the root cause of your troubles...presumably you've already done all you can on the earn more/spend less front?

thanks I have applied for this, I only got 25 months though, but for me it is a lot easier way of doing things as I get a bonus every december so i can pay a chunk off each time and it means i am not hovering around my overdraft limit each month :cool:

thebritishbloke

wibs wrote: »

thanks I have applied for this, I only got 25 months though, but for me it is a lot easier way of doing things as I get a bonus every december so i can pay a chunk off each time and it means i am not hovering around my overdraft limit each month :cool:

The next step, as soon as the money is in your bank account, close your overdraft so you're not tempted to max it again.

Thrugelmir

Speak to Lloyds and see what options they'll offer you.