Overdraft fee

elvis69 · 12 January 2018 at 10:56PM

Ooh first post!
I've got a virgin credit card with 4000GBP on and currently got a SO set up for 200pm
I've also got an overdraft of 2500GBP which I'm up to 2100, currently paying 50p a day on it.
Would it make more sense to do a cash transfer from my virgin card to pay off my overdraft then I increase my payments to the card to 400 (which I can afford to do)
OR
Do I leave as is and pay o200GBP pm into a savings account for a year then use that to clear the OD?

I feel a bit nervous about having 6500 on a credit card!

Thank you

SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2000
Partners monthly income after tax....... 800
Benefits................................ 130
Other income............................ 40
Total monthly income.................... 2970

Monthly Expense Details
Mortgage................................ 887
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 143
Electricity............................. 80
Gas..................................... 0
Oil..................................... 0
Water rates............................. 55.17
Telephone (land line)................... 47.56
Mobile phone............................ 0
TV Licence.............................. 8.33
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 450
Clothing................................ 30
Petrol/diesel........................... 250
Road tax................................ 18.33
Car Insurance........................... 33.33
Car maintenance (including MOT)......... 66.67
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 40
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 9.56
Contents insurance...................... 6.53
Life assurance ......................... 55
Other insurance......................... 22
Presents (birthday, christmas etc)...... 60
Haircuts................................ 16
Entertainment........................... 49
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2327.48

Assets
Cash.................................... 0
House value (Gross)..................... 300000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 301000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 206000...(887)......0
Total secured & HP debts...... 206000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Overdraft......................2500......0.........25
Credit card....................4000......200.......0
Total unsecured debts..........6500......200.......-

Monthly Budget Summary
Total monthly income.................... 2,970
Expenses (including HP & secured debts). 2,327.48
Available for debt repayments........... 642.52
Monthly UNsecured debt repayments....... 200
Amount left after debt repayments....... 442.52

Personal Balance Sheet Summary
Total assets (things you own)........... 301,000
Total HP & Secured debt................. -206,000
Total Unsecured debt.................... -6,500
Net Assets.............................. 88,500

sourcrates · 12 January 2018 at 11:39PM

We move posts if we think they will get more help elsewhere.

You posted in the stepchange debt advisors thread, it’s better in the general DFW forum.

Moved.

elvis69 · 13 January 2018 at 7:35AM

Thanks. Can u link to it please. I can't find it

elvis69 · 13 January 2018 at 7:38AM

Don't reply! I'm an idiot!!!! &#55357;&#56835;&#55357;&#56835;&#55357;&#56835;&#55357;&#56835;

enjoyyourshoes · 13 January 2018 at 11:40AM

OD 0.50 play on £2100 OD is 8.69% apr

If CC is less than that then its worth considering.

Key is to stop spending that has got you into this position and eradicate OD.

Reconcile bank accounts daily

set upon accrual for annual etc bills and account for this monthly

pay insurances annually as this saves on their crafty credit charges

stop the little thing in your head saying I want this .

elvis69 · 13 January 2018 at 12:00PM

Thanks for the reply. I've downloaded the trees app which is helping and I've done really well with not spending this month. My silly car needed £400 on it this month which has thrown me back a bit.
I rang my bank to ask them to waive the charge for a bit but they wouldn't do it.
I've thought about switching but my friend did this and ended up having a nightmare with her DD messing up and her life insurance being cancelled as a result

enthusiasticsaver · 13 January 2018 at 2:56PM

Are you still spending on the credit card? How did you accrue the £6500 debt in the first place? When does the interest free period on the Virgin card finish and what is the limit? You can only transfer to repay an overdraft if the card is a money transfer card.

50p a day for the overdraft is £15 per month in charges. I would make getting rid of the overdraft a priority but it does not have to be by transferring from a credit card. You have £2100 now so the best thing to do is reduce it by £200 each month until it is repaid. Avoiding overdrafts is a good idea especially as they can be withdrawn at any time and are getting more and more expensive.

You should also start up an emergency savings account as I warrant some of that borrowing is because you had an unexpected bill and no savings to cover it.

elvis69 · 13 January 2018 at 3:14PM

Thanks for the reply. The credit card is a money transfer one that I put another overdraft on (virgin) It also paid for two university courses (£1500) then a £500 car bill so currently has 4000 on it that I'm paying off 200 a month. It charges a 3.5% transfer fee then 0% for 12 months I'm not spending on it and I've cut it up

Overdraft fee

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