Overdraft

Pam300337

Hi, not used this site before and need some opinions. I have an overdraft of £1000 and wondered if it would be better for me to clear this, maybe by 0 percent card transfer and pay off monthly amount or just live with the overdraft. Problem is, there is a £5 daily charge if I go over. Help.

JuicyJesus

If you can get a 0% card transfer that would do it for a reasonable fee, then so long as you're disciplined about paying it off I would personally do that. It all depends on the discipline. The other option is to simply reduce the overdraft facility by, say, £100 a month (or whatever you feel able to) and it'll be gone in under a year.

But either way, draw up a budget and stick to it to ensure that you don't get back into an overdraft - you only tend to get into them by spending more than you earn.

PunkStew

Hi, I also have a similar scenareo my overdraft is 1500 and I would also like to try and clear it to get back into credit,I currently get charged around £18 a month for my overdraft and figured would I be better off to pay it off quickly with a money transfer inc fee or would I be better off to just try and clear it by £50 or so a month? I really just want the overdraft gone, but then on the other hand I would have card repayments in its place but with no interest if 0% card, whats the best option? Please help

JuicyJesus

Nobody can tell you what the best option is for you personally; the thing to do is to set yourself a realistic budget, make yourself stick to it and then do whatever you feel is easiest to stick to. The 0% money transfer card will doubtless cost you less in interest, but it is also something that you could potentially forget to pay or pay less than you need to and end up with a long term debt. It really is entirely up to you.


It may help to go over to the Debt Free Wannabe board and post there with a list of your incomings and outgoings (SOA) as they can give you more advice.

DCFC79

PunkStew wrote: »

Hi, I also have a similar scenareo my overdraft is 1500 and I would also like to try and clear it to get back into credit,I currently get charged around £18 a month for my overdraft and figured would I be better off to pay it off quickly with a money transfer inc fee or would I be better off to just try and clear it by £50 or so a month? I really just want the overdraft gone, but then on the other hand I would have card repayments in its place but with no interest if 0% card, whats the best option? Please help

Pam300337 wrote: »

Hi, not used this site before and need some opinions. I have an overdraft of £1000 and wondered if it would be better for me to clear this, maybe by 0 percent card transfer and pay off monthly amount or just live with the overdraft. Problem is, there is a £5 daily charge if I go over. Help.

Stew and Pam, sort out the issue why your in your overdraft before you try and get out of it otherwise you will be in the same situation.