Should I reduce my Aqua credit card debt with my overdraft.

ihatedeskjets

Hi,
I wonder if I get get an opinion on this please. 
I have a £2500 debt with Aqua and they just jumped my interest rate up to a whopping 49%! 
My bank recently gave me an overdraft of £750 at 39%

Only 10% between them but I'm thinking of reducing my Aqua debt each month using the overdraft, as owing the bank at 39% is better than owing Aqua at 49% ??

Am I missing something or is my logic sound.

Thanks

jay1804

Overdrafts can be removed at any time, can you tried any balance transfer cards

ihatedeskjets

I have tried balance transfer cards but get rejected, I'm not on a high income so affordability comes into play. 

SusieT

I would see if I could reject the interest rise, then let them close the card so that I could pay down the balance at the old rate. Both a positive and negative with that is that you cannot use the card any more, so will not have access to credit (please stay out of your overdraft), it will mean that at some point if you can be careful with your outgoings that you can clear the card and have one less debt.

ihatedeskjets

Thanks for the comments and ideas so far but as I've explored every other option already to pay less could I just get answers to my question, Is it better to owe the bank at 39% or Aqua at 49%.

I currently pay around £120 per month in interest to Aqua, reducing the debt by using the overdraft would save on interest to Aqua, yes I know I would owe the bank, but at a lower rate. 

Or is my logic flawed?

Thanks 

jay1804

ihatedeskjets said:

Thanks for the comments and ideas so far but as I've explored every other option already to pay less could I just get answers to my question, Is it better to owe the bank at 39% or Aqua at 49%.

I currently pay around £120 per month in interest to Aqua, reducing the debt by using the overdraft would save on interest to Aqua, yes I know I would owe the bank, but at a lower rate. 

Or is my logic flawed?

Thanks 

You will save money on the interest, but as I said overdrafts can be removed at any time, which means they could default your current account if you don't pay them when they ask. Also having credit card debt, look better than a maxed out overdraft and credit card debt. It might be a good idea to post a SOA on the DFW bored, they can give you ideas on how to cut spending and pay of the balance.

Also SusieT's idea of asking them to close the account is a good idea.

ihatedeskjets

jay1804 said:

 Also having credit card debt, look better than a maxed out overdraft and credit card debt. 

This I didn't know, I don't need to cut spending or get help getting out of debt, we pay things just fine I only wanted to know if shifting debt to the overdraft was ok or not, but if a large overdraft damages me more then I think I'll leave the overdraft un-touched.

Thank-you all

Ebe_Scrooge

ihatedeskjets said:

jay1804 said:

 Also having credit card debt, look better than a maxed out overdraft and credit card debt. 

This I didn't know, I don't need to cut spending or get help getting out of debt, we pay things just fine I only wanted to know if shifting debt to the overdraft was ok or not, but if a large overdraft damages me more then I think I'll leave the overdraft un-touched.

Thank-you all

With respect, carrying a debt of £2500 at a very high rate of interest means you're not paying things just fine.  It's not a huge amount of money, but you'd be far better off just doing everything you can to clear it ASAP.

As previously posted, regular use of an overdraft is worse for your credit history than carrying a credit card debt, added to which banks can (and do) remove an overdraft facility with almost no notice and require immediate and full repayment.

MEM62

ihatedeskjets said:

jay1804 said:

 Also having credit card debt, look better than a maxed out overdraft and credit card debt. 

I don't need to cut spending or get help getting out of debt, 

Your statements below suggest that maybe you do.  I appreciate that you may believe that you do not need any help but you are carrying £2.5k of debt, using one of the most expensive ways of borrowing, and appear to have run out of options for re-structuring the debt at a lower interest rate.          

ihatedeskjets said:

I'm not on a high income so affordability comes into play. 

ihatedeskjets said:

I currently pay around £120 per month in interest to Aqua, 

[Deleted User]

I wouldn't jump from the Aqua frying pan into the Overdraft fire.
See if you can reject the rate increase / get a lower rate from Aqua.
Then look for alternative cards/ loans options to pay off balance with a lower APR if possible.