Overdraft/account transfer

portron

Hi,
I'm not great at undertanding debt interest rates etc but I feel that my current account with the co-operative is going to be expensive for me and I am wondering if it is worth my while switching, if I can.

It was a student account and is now a current account. I am overdrawn by an arranged -£1400.
The interest rate is 1.46%/month (18.9%EAR).

My financial circumstances changed unexpectedly for the worse but have improved again thankfully and I can pay a bit of it off monthly.

nevertheless, every time I check it appears that I have charge on charge and interest accrues.

The only time I have gone over the arranged interest rate was due to the annual charge of £20 being debited from my account, and then interest was also debited. The money I am paying is barely covering the charges - I paid £40 and that has only paid off what the co-operative have charged me, it hasn't touched the overdraft.

This really frustrates me and I want to switch.

Am I able to transfer this debt to another bank that won't accrue interest and allow me to start to pay off the overdraft rather than charges/interest only?

At the moment I think I could pay £100/month, at least for the foreseeable future.

Archi_Bald

You cannot switch an overdraft - you would have to apply for an overdraft at another bank. Unless you manage to get a 0% overdraft for some of the money (e.g. Nationwide FlexDirect, 12 months) or a 0% Super Balance Transfer card, you should be looking at getting a loan to pay off your debt. Loans are typically cheaper than overdrafts.

Have you worked through this: http://www.moneysavingexpert.com/credit-cards/?_ga=1.188057504.946927082.1412175346?

BMN

As above really.

There's also the option of getting a 0% purchases credit card which probably won't allow you to pay off your overdraft in one go (like a super balance transfer/money transfer). But it will allow you to make higher monthly payments to the overdraft.

CLAPTON

portron wrote: »

Hi,
I'm not great at undertanding debt interest rates etc but I feel that my current account with the co-operative is going to be expensive for me and I am wondering if it is worth my while switching, if I can.

It was a student account and is now a current account. I am overdrawn by an arranged -£1400.
The interest rate is 1.46%/month (18.9%EAR).

My financial circumstances changed unexpectedly for the worse but have improved again thankfully and I can pay a bit of it off monthly.

nevertheless, every time I check it appears that I have charge on charge and interest accrues.

The only time I have gone over the arranged interest rate was due to the annual charge of £20 being debited from my account, and then interest was also debited. The money I am paying is barely covering the charges - I paid £40 and that has only paid off what the co-operative have charged me, it hasn't touched the overdraft.

This really frustrates me and I want to switch.

Am I able to transfer this debt to another bank that won't accrue interest and allow me to start to pay off the overdraft rather than charges/interest only?

At the moment I think I could pay £100/month, at least for the foreseeable future.

pay 100 per month starting now and the OD will reduce significantly

Ed-1

portron wrote: »

Hi,
I'm not great at undertanding debt interest rates etc but I feel that my current account with the co-operative is going to be expensive for me and I am wondering if it is worth my while switching, if I can.

It was a student account and is now a current account. I am overdrawn by an arranged -£1400.
The interest rate is 1.46%/month (18.9%EAR).

My financial circumstances changed unexpectedly for the worse but have improved again thankfully and I can pay a bit of it off monthly.

nevertheless, every time I check it appears that I have charge on charge and interest accrues.

The only time I have gone over the arranged interest rate was due to the annual charge of £20 being debited from my account, and then interest was also debited. The money I am paying is barely covering the charges - I paid £40 and that has only paid off what the co-operative have charged me, it hasn't touched the overdraft.

This really frustrates me and I want to switch.

Am I able to transfer this debt to another bank that won't accrue interest and allow me to start to pay off the overdraft rather than charges/interest only?

At the moment I think I could pay £100/month, at least for the foreseeable future.

How long after your student accounts was changed to a current account were you charged the £20 arranged overdraft fee out of interest?

portron

Thanks for the info,

I will read the thread suggested.

The account stopped being a student account and became a current account two years after I opened it. I was a student for the first year of this (master's) and had an extra year of it being a student account after I stopped being a student.

I haven't been getting notification of costs interest etc which doesn't allow me to manage it well.