Overdraft or Credit Card

Shellster

Hi everyone,

I wonder if anybody has advice that may be able to help me out.

I currently have an arranged overdraft of £2,600 and by each pay day I end up right back at the limit, it has been like this for sometime now, I don't feel like I particularly over spend but would obviously like to slowly climb my way out so reducing any fees I pay per month.

I was wondering if just trying to clear it in one bulk payment, using a particular credit card would be worth while, as I think I'm paying around £60 in fees with just my overdraft.

I know it isn't a huge amount of debt nor are the charges life changing, but I really want to get back into the green with this bank account and close of my overdraft or at least reduce it dramatically.

I did previously have a credit which I was paying interest on and after the advice I found on here I transferred this over to another card and am already seeing that save me some extra pennies per month!

Any advice would be greatly appreciated.

andyfromotley

There are a number of cards that will let you do this. One is an MBNA card with up to 32 months interest free and a 1.7% fee. its on the CC section of the main site.

If you can get this card it will be much cheaper than your overdraft obviously, however you still need a plan to pay it off, paying just the minimum will take you years. Once the 0% runs out you will have to shift it or the interest rate will go to 20%. You will need to close your overdraft facility or you risk running that back up. So in short yes it can be done and makes financial sense. however as always debt is the symptom not the cause. How have you built up such debt, why can't you repay it? These are the things that need addressing too.