sorting out finances

zaynab

OK here goes I have below debt to sort out:
1. Halifax OD at £2499/- (control till jan 2015) after il get hit with interest rate
2. Barclaycard initial at 1000/- (limit 1200) getting hit with 34.9% interest
3. Luma card at £950 (limit 1000) interest will start from next month 34.9%
my salary goes in Barclay CA and after paying all bills I am left with £400 after paying in above accounts I am then left with £150-£100.
My credit score is average and not eligible for BT (got rejected for one already)
Thinking of opening Santander cashback account to get atleast monthly £4.5 that I can use to put in OD. and also thought if I put £1000 in Barclaycard and only use the card for monthly grocery then pay the spent amount month after that I would actually be in better position or should I just keep paying 100-200.

grumbler

zaynab wrote: »

...also thought if I put £1000 in Barclaycard and only use the card for monthly grocery then pay the spent amount month after that I would actually be in better position or should I just keep paying 100-200.

Where are you going to get £1000? If you can, then of course it is better than paying £25 interest every month. Is your free overdraft limit much higher that £2500? If not, an overdraft is unlikely to cost you less than £25 p.m.

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zaynab

OD limit is 2999/- and I will transfer £1000 from salary but then again what will happen to my DD from account if I transfer 1000 from salary

grumbler

zaynab wrote: »

...and I will transfer £1000 from salary but then again what will happen to my DD from account if I transfer 1000 from salary

Well, if currently "after paying all bills you are left with £400", then you will get £600 overdrawn if you credit £1000 less to this account. Unless your agreed overdraft limit is higher than £600 some DD(s) will be bounced and you'll get hit with charges. I the limit is £600+ then, most likely, it will cost you £0.75/day.

IMO, if you have arranged overdraft at Barclays, it's worth considering paying your Barclaycard off with £500 from Halifax and £500 from the salary / Barclays current account. Then you can use it for purchases and enjoy up to ~50 days interest-free period if you pay the balance in full every month.

zaynab

I meant if I pay £1000 in my Barclay credit card then the account would have been repaid in full and used the card for the rest of the month for only grocery but I thought how would DD be paid from CA if I paid in £1000 from salary which is also paid into my Barclays CA. I thought if I paid the cards first then looked at OD it would be better.
My arranged OD with Halifax is 2999 and its at 2499 at the moment. I had asked them to put control so I don't get his with charges but that will expire in dec 2014.

grumbler

A DD can't be paid from a credit card.

And, TBH, I have no idea what this 'control' means. I thought it was a free overdraft until 2015.

zaynab

control means I wont be charged fee till dec 2014 and I cant use account till I pay off OD. ofcourse I cant pay DD from CC but thinking once DD are paid from current account (salary) I cant transfer rest to credit card and then use the same card for monthly grocery later pay that amount used month after. that should be full repayment in Barclay card or is there a more simple way

Cash_Flow

zaynab wrote: »

control means I wont be charged fee till dec 2014 and I cant use account till I pay off OD. ofcourse I cant pay DD from CC but thinking once DD are paid from current account (salary) I cant transfer rest to credit card and then use the same card for monthly grocery later pay that amount used month after. that should be full repayment in Barclay card or is there a more simple way

If you pay £1000 on to your Barclaycard they could decide to reduce your credit limit without any advance warning, so I would warn you against doing this.

If I was in your position I would try and get the Halifax OD Below £1999, once you do this the cost will be down from £2.00 per day to £1.00 per day.

Looking at the control option you have on your current account, are you currently paying £10 per month for this facility?

The Control on your account does not stop interest charges of £2.00 per day, it only stops unauthorized OD charges.

zaynab

no I am not getting charged anything I had a chat with Halifax money management team and they have been kind enough not to charge anything till dec 2014

zaynab

y would Barclays reduce my limit I am trying to pay it back off and bring it on 0 in order to cancel the card n apply for something that charges les interest rate and only to use it for emergency

Cash_Flow

zaynab wrote: »

no I am not getting charged anything I had a chat with Halifax money management team and they have been kind enough not to charge anything till dec 2014

Sorry I was reading the terms of Halifax account "Control" and it made no mention of stopping interest charges.

I can see in your case you have a personal agreement in place with Halifax.