Overdraft repayment advice

Siyren

Hi guys,

I'm new to the forum and desperate to start making a dent in some of mine and my partner's debts. Our biggest issue currently is that we have a £1500 overdraft that is totally maxed out from when we were both unemployed. We currently pay £30 a month just in interest fees to prevent this from defaulting.
What we'd like to do is transfer this onto a 0% card so that we're at least paying off the debt. We can't afford to pay more than £30 so we're literally not making a dent in this at all at the moment.

As it's an overdraft I wasn't sure if we can transfer it. Can anyone offer me any advice at all? Also is there a way to then transfer the remaining balance on if we can't pay it off in the time alotted.?

Thank you!

Karonher

This might be what you need.

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

Siyren

I've just had a read of that The only worry I have is that I'm not entirely convinced I can pay it off in that time. It doesn't seem to mention whether I can then repeat the process and transfer it on.

Essentially I'm worried that this seems a really backwards way to do this. I'm making more debt to pay off my first debt.

gettingtheresometime

My biggest concern would be by transferring the debt you will intentionally dip into the overdraft again, thus ending up with double the debt.

I've cleared £900 worth of od by putting into the bank account enough to cover the fees and then a set amount each month.

sourcrates

Hi,

Write to the bank and explain you are having trouble paying this off, ask if they will suspend interest for say 6 months, to allow you to get ahead of it.
Your other option is to open a new basic bank account for your everyday banking needs, then treat this OD as just another debt to service.
The problem with this is it will affect your credit file, but will also allow you to clear the debt, depends which is more important to you.

scottishbrummy

I've only just started on my journey to pay back my debt so tackling my CC first (1500) before my OD (1800). I'm doing what sourcrates has said, so I'm only spending what I put into my other account. That way I don't need to worry about whether I'm spending money I shouldn't be and hopefully I'll stop thinking about the available balance in my other account... The balance I have available I'll transfer to my CC and then after that's paid off my current account OD will start coming down.