Advice Sought on Raising Overdraft to pay off high plastic debt?!

maureenjscott

Hi! I haven't been around for a wee while, mainly cause I fell of the DFW wagon and am trying to get back on! lol

My internet banking has a function for increasing your overdraft limit depending on what they say you are eligible for. The interest rate on this is 6.9% AER variable at present. I have three store cards with around £1500 on them (total) charging 26-29% AER. Also, credit card with £2000 charging 17% and two cataolgues with about £500 total charging 29%.

How do people feel in general about raising the overdraft to pay off the debt (with a view to closing the said accounts)? The eligible limit I have is more than enough to pay off all the above.

Hmmmm any advice gratefully received!
thanks
Mo x

RAS

The scary bit is VARIABLE.

The otehr thing is that you have three storecards, two catalogues and a CC.

Are you prepared to close the accounts other than the CC and stop buying through them, if you were to transfer the debt to an OD?

Personally I would get rid of the store cards and catalogues and pay off that debt, then work hard on the CC, but not transfer that balance to the OD.

I a month or two, with the sother accounts cleared, you might get a low life balance CC to transfer it to instead

maureenjscott

Thanks for the advice guys. I am a student at the moment so getting a new cc is not likely till 2 years when I am working and have a salary coming in.
I have gone ahead and paid of the accounts. Will call to close them when the payments clear.
thanks again
Maureen

CLAPTON

maureenjscott wrote: »

Thanks for the advice guys. I am a student at the moment so getting a new cc is not likely till 2 years when I am working and have a salary coming in.
I have gone ahead and paid of the accounts. Will call to close them when the payments clear.
thanks again
Maureen

just remember that you need to pay the full balance on the cards for two consecutive months before you can actually close the account.