Using a credit card to pay of an overdraft

Liz65
Liz65 Posts: 95
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Hi, can anyone advise me please?

My husband and I have had an overdraft of £800 on our main bank account for about 20+ years and have decided that we need to rid ourselves of it because we use it every month to its limit and it is cleared every month by my husbands wages (I am not working at the moment but looking for employment).

We are not sure how to go about this, should we ask the bank? Get a 0% credit card or apply for a loan.  I do not really understand interest rates etc.

Also we do have a 0% credit card already that we have at its limit, would we be able to combine the two and pay them both off monthly as one?

I am aware we have not been sensible but we wish to try and get rid of these debts.

Many thanks in advance


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  • Jami74
    Jami74 Posts: 982
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    Go to the debt free wannabe board, there'll be a link to something called an SOA which you fill in with all your income, outgoings and debt and people will give advice on the best way to get rid of the debt. 

    If you already have a maxed out credit card (hope you are making the minimum payments each month) and frequently use the overdraft you might struggle to get more cards and loans.


    Debt Free: 01/01/2020
  • grumbler
    grumbler Posts: 58,627
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    edited 20 January at 3:24PM
    Liz65 said:

    My husband and I have had an overdraft of £800 on our main bank account for about 20+ years and have decided that we need to rid ourselves of it because we use it every month to its limit and it is cleared every month by my husbands wages (I am not working at the moment but looking for employment).

    We are not sure how to go about this, should we ask the bank? Get a 0% credit card or apply for a loan.  I do not really understand interest rates etc.

    £800 is a relatively small debt. Borrowing money to pay it off can make servicing it at a little cheaper, but doesn't solve the problem. The only way to solve it is to cut your expenses and/or to earn more.
    Also we do have a 0% credit card already that we have at its limit, would we be able to combine the two and pay them both off monthly as one?
    Combining doesn't change anything. And it makes no sense to switch a 0% debt elsewher.
    We are born naked, wet and hungry...Then things get worse. :(

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
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  • fatbelly
    fatbelly Posts: 20,207
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    edited 20 January at 4:22PM
    I agree you need to look at the whole picture as you have an overdraft and a maxed-out credit card.

    You might be able to improve things a bit with the overdraft

    https://www.moneysavingexpert.com/banking/cut-overdraft-costs/
  • drb411
    drb411 Posts: 7
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    Do it a small bit each month.  Reducing the overdraft by £50 or £100 each month.  Before you know it - it will be gone.

    Up to you if you leave a small overdraft to use like £100 or go to £0.  Depending on the bank you might get fees if you accidentally go into an unauthorised overdraft so best to leave £100 in this case but be strict and try not to go past £0.
  • Liz65
    Liz65 Posts: 95
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    Thanks for advice.  Can I ask another question please? 

    We have another joint account with another bank that has no overdraft facility on it,  would I be able to transfer direct Debits over to that account with the money to pay them (just a few each month) and then eventually transfer wages to get paid into that account leaving the overdraft in the previous bank and pay it off like a loan? Would it be legal to do that? Thanks again
  • born_again
    born_again Posts: 13,572
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    Liz65 said:
    Thanks for advice.  Can I ask another question please? 

    We have another joint account with another bank that has no overdraft facility on it,  would I be able to transfer direct Debits over to that account with the money to pay them (just a few each month) and then eventually transfer wages to get paid into that account leaving the overdraft in the previous bank and pay it off like a loan? Would it be legal to do that? Thanks again
    Yes you could. No legalities involved.
    Only thing could be if both wages were removed, bank could close overdraft & want immediate payment. As they will think that you are going to leave them with a debt, given all normal banking transferred.
    Life in the slow lane
  • fatbelly
    fatbelly Posts: 20,207
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    edited 22 January at 10:13AM
    Liz65 said:

    We have another joint account with another bank that has no overdraft facility on it,  would I be able to transfer direct Debits over to that account with the money to pay them (just a few each month) and then eventually transfer wages to get paid into that account leaving the overdraft in the previous bank and pay it off like a loan? Would it be legal to do that? Thanks again
    Yes. No reason why not.

    Are you aware there are three banks offering cash sweeteners at the moment and they will move your direct debits as part of the process?

    https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/#switch

    Actually there are two because the Co-op just pulled theirs

    https://www.co-operativebank.co.uk/products/bank-accounts/switch-and-save/

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