Overdraft help please

[Deleted User]

Thanks for your help

I did a money transfer of £3000 yesterday, it hit the account today and we are back to where we should be. The Overdraft although hasn't beeen elimintated is now down to £500 with the view to clear that by Christmas if it isn't used.

The problem we had with the OD is that we'd be in it within days of being paid, so we were never effectively out of it and it was getting worse every month despite our best efforts with budgetting.

The transfer deal I used was 0% until 1st Jan 2022 with a 2.4% fee from Barclaycard.

Unicorn_cottage

Could you open another bank account which your wages get paid into then treat the OD account as a "debt". I struggled with the OD debt when I was paying off my debts as it just swallowed everything and I couldn't see an end in sight!

skintdaddy79

Sorry jumping in here, but Unicorn Cottage; this is what's happening to me with my overdraft debt. I'm paying off credit card debts but I'm effectively using OD to pay this off if that makes sense. What's the best way out of this? A money transfer to clear off OD?
Again sorry for jumping in there!

Unicorn_cottage

Hey skintdaddy79. You know what you need to do Get your own thread going with your SOA on it and we can have a look for you. How you getting on with your debts - I saw you had made a few posts before? Have you made any progress?

My strategy with the OD was to treat it like a debt so I had:

Loan 1
Credit card 1
Credit card 2
Bank of Mum & Dad 1
Overdraft 1

I really really struggled seeing the money being swallowed up as I said so I opened a bank account and just paid it off from there. In reality I should of tackled the OD much earlier in the day as it was costing us a lot of money but psychologically as it was absorbing the wages it felt different and at first I couldn't pay it down like a "normal" debt. This was also partially as the debt was so big i.e. £2000k. Imagine how happy I was to see that debt finally gone!

Skintdaddy79 I don't know your circumstances but could you take advantage of any of the new current account switching incentives and use that extra money to make a dint in the overdraft?

Sorry Purplemumof2 for hijacking x