£2000 into interest-free overdraft thats' about to end...

TomJ123

So I've currently got a Santander Graduate Account with a £2000 'free' overdraft. For the past three years I've usually been in my overdraft and I'm about £1800 into the overdraft at the moment. Unfortunately now after three years, my account will be changed in September to a standard Santander 123 Current account without the £2000 overdraft. I get paid around £800 a month as a teaching assistant so there's absolutely no way I'm going to get out of the overdraft by that time.

I was therefore wondering if anybody could advise me on what to do? I'm not sure which route to go down... Loans, Credit cards etc. An arranged overdraft on this account will cost a fortune! I know its obviously my own fault, I should have realised the overdraft would end at some point but being me, I just tended to not face up to it... Lesson learnt!

Any advice would be great. Thanks!

Tom

YorkshireBoy

2nd job.
3rd job.
Sell something.
Cut back elsewhere.

Switch to an account with a 0% overdraft, Nationwide FlexDirect for example.
Apply for a money transfer credit card.

The last two will only work if you do one or more of the first four above.

xylophone

I get paid around £800 a month as a teaching assistant so there's absolutely no way I'm going to get out of the overdraft by that time.

Get a holiday job?

Vittel

Less party and more work. Loan or a credit card is not an answer.

SnowTiger

It appears an arranged overdraft of less than £2,000 with Santander costs £1 a day, capped at 20 days a month. £20 a month.

The 123 account has a £5 monthly fee. I'd be surprised if someone earning £800 a month was able to earn that back as cashback.

Could you have the account converted to an Everyday account, which doesn't have a monthly fee? There's also 123 Lite which offers cashback, but doesn't pay interest, for £1 a month.

As for paying the overdraft back, I think you'll have to up your income and live (very) frugally.

binaryuniverse

I'd apply for a Tesco Money Transfer credit card that gives me 0% on money transfers. You'd pay a fee for the transfer (which would be about £70). But, if accepted, that would give you time to pay it off, depending on what length of 0% they give you (approx £78 a month, if 28 months, £47 if you get the full 40 months). I think also TopCashBack will give £31.50, if you go through them, so that's a starting point.

Of course, you need to be extremely disciplined about this. Making cut backs to what you spend on, choosing budget food/products over more expensive.

We don't know much about your monthly outgoings. Are you renting, do you live with your parents? Rent takes a huge chunk of earnings these days, and leaves little room to manoeuvre. But if you're with your parents, that does tend to make it a bit easier.

Realistically, how much you can you set aside to pay this debt off? You get paid £800 a month, but get in to the habit of being paid £700 a month (or whatever figure you think you can manage). By that I mean, the moment you get paid, immediately ring fence that £100 so that it's for the debt, and pay it to the owed account straight away The longer you have it in your account the longer you're tempted to spend it, or hold it back 'just in case'.