Best way to clear overdraft - sorry if this seems like a daft question!

mrsspendalot

I don't know what the APR is, but it is with Abbey and is the preferential overdraft rate because in 4 years we have never been in credit, which is where the problem lies. We never get into positive figures when everything that has come in has to go back out.

I think I am going to reduce it right now by £200 because we have £333.63 spare on our spreadsheet for November. I may as well chop some of it off now and that is £200 less to worry about.

kizzykizzywizzy

Hi we had a £2000 overdraft for about 4 years also which we used every month, we got rid of it by just paying the minimum on our 0% cards & throwing all of our money into the overdraft.
I did ring the bank to lower the o/d to £1500, but the donuts only did it until the end of the month! although I did notice before any charges went on, as I check the bank online every day, it did cause a lot of stress as discovered just before midnight & needed to get through to call centre before then so they didn't add charges & although Lloyds say they are open 24 hours they must only have a few staff that time of night. Rang & complained, said they'd call me back, no call, rang again to say no-one had called me, still no-one available & no-one called back - got a letter to say £1500 overdraft agreed until Jan 1958! Then eventually checked my bank statement & there was £25 - customer services credit, never did recieve a phone call.
Hence to say, have left the overdraft limit at £1500 for now until I can face going through all that again.
Good luck with the reduction, it has meant we are nearly £30 better off a month without the bank charges.

OGB03

Did you want to clear your OD by the end of December 2007?

When you say you have £333 'spare', do you mean disposable income, ie, not including grocery shopping and other incidentals? If so that's good.

Do you realise that since 10am this morning, you've already reduced your debts by £200!!! Not bad in a few hours. :T

mrsspendalot

Yes I ideally wanted to clear it by the end of 2007, but if not, then definitely by the end of January. I think it's probably best not to overstretch myself with it being nearly Xmas as no doubt there will be all sorts of last minute bits that will crop up. I have finished my Xmas shopping though, so that is good!

Yes, £333 'spare' after paying the last few bills and the last food shop of the month. We cleared around £1200 of debt in November, so our monthly debt commitment has now dropped to £72.57 in minimum payments. We pay £500 a month on our snowball to clear them, but the last 2 debts are old ones we are going to pay the minimum on and save the rest for full and final settlements. But we want rid of the overdraft first.

So yes, £333 spare which will allow us to pay £200 off the overdraft straight away and I will carry the rest over to December's spreadsheet.

God I love spreadsheets!!!!

mrsspendalot

All done!

Been on to my online banking and reduced my limit from £1100 to £900 :T

Thanks for all the advice so far. I wish I had mentally viewed this just like the rest of my debts, as it probably would have been paid off by now :rolleyes: Nevermind!

Anyway, the limit is now £900. I am going to reduce it to £600 next month and then clear the rest in January. I have been and put the repayments onto my spreadsheet so it shows up as an outgoing now.

In_Search_Of_Me

Just a thought...I have an O/D facility but dont use it but if I did the first £250 is free o/d and the rest with interest at abut 16%. Worth finding out how much the interest is because you can then work out which is best to pay off first CC or O/D IYKWIM! Hope that helps?

mrsspendalot

Thanks ISOM.

I have cleared all my credit cards now, and the 2 old debts I have are with DCAs so I don't pay interest on them, which is why the OD has become my number one priority.

OGB03

mrsspendalot wrote: »

All done!

Been on to my online banking and reduced my limit from £1100 to £900 :T

Thanks for all the advice so far. I wish I had mentally viewed this just like the rest of my debts, as it probably would have been paid off by now :rolleyes: Nevermind!

Anyway, the limit is now £900. I am going to reduce it to £600 next month and then clear the rest in January. I have been and put the repayments onto my spreadsheet so it shows up as an outgoing now.

Excellent stuff! :T By the end of January, you will have completely cleared your OD and you'll only have your two debts with the DCA's. Now that is a really good way to start the new year!

Now, if only you could change your user name to "mrsusedtospendalot"!