Advice for clearing off over-draft

iPeteM_2

Hi there, first of all, if this is in the wrong forum I apologize & please move it to the proper place. Second of all, I'm looking for some advice on reducing / clearing my overdraft. I don't mind giving specifics as it'll hopefully lead to more specific advice. I currently have a £1000 overdraft with the Santander bank. I'd like to clear this as I'm constantly paying £30 a month for using it. Ideally, a loan of £1000, which I could pay off £30 a month over 2 years 8 months. I realize my day to day (monthly) spending would be the same but the £30 monthly payments would be going towards something as opposed to now where they're going to the bank & not changing my balance.

I've never had a credit card, would this be the way to go? A loan from my other bank (Bank of Scotland, £300 overdraft limit)?

Thanks for reading, any advice gratefully recieved.

[Deleted User]

iPeteM wrote: »

Ideally, a loan of £1000, which I could pay off £30 a month over 2 years 8 months.

That would only total repayments of £960. What about the rest of the capital? And the interest?

A potentially more effective way would be to get a long term 0% on purchases or money transfer card. But you may struggle to get that, given your lack of credit history.

What do your credit files show?

iPeteM_2

Thanks for replying. Okay, a mis-calculation there. 3 years, that takes care of the capital. The interest, well I'd be paying that off over the course of 3 years too, ideally an interest free loan/credit card would be be an option.

My credit files? Experian said my credit score is fine.

[Deleted User]

Not your score - Experian don't lend money. What do your credit files show in terms of data? eg

Have you had credit before?
Are any missed payments shown?
Are you on the electoral roll?
Any financial associates?
etc

iPeteM_2

I don't have access to Experian any more (my sub lapsed) but I can tell you that I have had credit (car finance), haven't missed any payments, I am on the electoral roll, I am not a home owner, stable employment (5+ years), no financial associates, no dependants / significant others.

[Deleted User]

It would be wise to order your credit files from all 3 CRAs to see what's on there - £2 for Experian, and free through Noddle for Call Credit, and Clearscore for Equifax.

Then you'll have a better view of what to apply for and through which lenders.

iPeteM_2

I shall do that. Thank you.

Moneycoach

iPeteM wrote: »

Second of all, I'm looking for some advice on reducing / clearing my overdraft.

Money?!


Sorry, too easy...


A credit card or loan is not the answer, you need to change your behaviour not the type of debt.


1. Start with a budget, what is coming in what is going out


2. What can you sell or sacrifice?


3. Can you do some overtime or get a second job?

iPeteM_2

My friend, thank you but no.