Cheapest way of paying off overdrafts/credit card

Bettycat

Hi

This is my first post so hope I'm doing it right!

I'm planning on retiring in around three years and want to be debt free by then.

I currently have 2 overdrafts at £2400 and £2150 which cost me around £80 in monthly fees. Also £1000 on a standard rate Halifax credit card. I pay £50 per month on it which is over the minimum payment.

The overdrafts aren't reducing as I use them both in full every month. I would rather get a loan/low-interest credit card and clear the overdraft and credit card together over the next three years. Anyone know the best way of doing it?

Thanks

Clive_Woody

Bettycat wrote: »

Hi
This is my first post so hope I'm doing it right!

I'm planning on retiring in around three years and want to be debt free by then.

I currently have 2 overdrafts at £2400 and £2150 which cost me around £80 in monthly fees. Also £1000 on a standard rate Halifax credit card. I pay £50 per month on it which is over the minimum payment.

The overdrafts aren't reducing as I use them both in full every month. I would rather get a loan/low-interest credit card and clear the overdraft and credit card together over the next three years. Anyone know the best way of doing it?

Thanks

Bottom line is you need to spend less each month and use the extra to pay off your debts. Start by paying extra on the debts with the highest interest.

Depending on your circumstances you may be able to transfer your credit card debt onto a 0% card (see link below) and then make sure you pay it off before the 0% deal expires.

http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards?_ga=1.16475382.1367509533.1421937953

CLAPTON

Bettycat wrote: »

Hi

This is my first post so hope I'm doing it right!

I'm planning on retiring in around three years and want to be debt free by then.

I currently have 2 overdrafts at £2400 and £2150 which cost me around £80 in monthly fees. Also £1000 on a standard rate Halifax credit card. I pay £50 per month on it which is over the minimum payment.

The overdrafts aren't reducing as I use them both in full every month. I would rather get a loan/low-interest credit card and clear the overdraft and credit card together over the next three years. Anyone know the best way of doing it?

Thanks

if you are permanently using your OD what will you will on in retirement (assuming your income will drop then)

you will need to reduce your spending if you are going to clear over 6500 of debts : even interest free this is 181 per month for 36 months: obviously more if you have to pay interest or fees.


you could try for a 0% CC
either one with a money transfer feature (i.e. where you can transfer to your bank balance )

or a 0% BT card for the 1000 (probably with 3% fee)

and/or a 0% on spending and put all your spending on this so reducing your ODs

however whatever you do you need to reduce your spending