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Loan to pay off Overdraft?

Last post Tue, May 04 2010, 5:04 PM by Kash_knows_it_all. 3 replies.
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  •  Tue, May 04 2010, 5:04 PM

    Re: Loan to pay off Overdraft?

    Get yourself if possible a Virgin or MBNA credit card and do a cash transfer which will have a 4% fee. Once the cash is transferred you will have 12 months where you dont have to pay any interest and just pay minimum £25 a month. If you have not cleared your balance within this time then apply for another 12 months interest free card and do a balance transfer.

    For example doing a cash transfer of £1000 will cost you £40 for 12 months. Then if you do a balance transfer after the 12 months then the one off fee will be from 2 to 3%.

    • Post Points: 5
  •  Mon, Apr 19 2010, 9:24 PM

    Re: Loan to pay off Overdraft?

    Thanks for the reply. The problem is i work a 9-5 (often longer) job and I'm also studying for a professional qualification so i am in college every other weekend and need to study the rest. I've got no doubt i can work my way out of it but it will take time and i'm nervous about being so far in my overdraft with so much going out - doesnt leave me much room for emergencies.

    I'm still ummming and ahhhing about it.

    • Post Points: 5
  •  Mon, Apr 19 2010, 10:16 AM

    Re: Loan to pay off Overdraft?

    Hagi,

    in my opinion borrowing for luxuries (ie non necessities) especially on your wage is not a good move.

    you say you live at home - why not try and get a second/third job and go flat out to save. that way you wont have to apply for more credit, still got to the stage do etc and the wedding. plus on the upside you wont have the change to spend money if you are working and you can reduce your over draft.

    • Post Points: 20
  •  Sun, Apr 18 2010, 9:24 PM

    Loan to pay off Overdraft?

    Hi all, I need some advice.

    Basically recently I've had a lot of outgoings - three of my friends are getting married and i've been invited to the weddings and the stag do's, plus I've lost a lot of weight so have needed to buy new clothes so I've had to pay out a lot of money which i wouldn't normally.

    The thing is i have been sliding deeper and deeper into my overdraft, and I'm currently £1300 into my £1500 overdraft, and I only get paid £1000 a month so you can see straight away this isnt a good situation. i have now worked a monthly budget of my fixed outgoings which works out at £550 (before taking into account personal spending such as going out, clothes etc), so i know I can claw this back.

    Part of these outgoings is an existing loan with HSBC which i am paying back at £150 per month which was to consolidate another loan i had, paying off my overdraft before and £800 to pay for car repairs. I contacted HSBC to see if i could get another £1300 but they stated they wanted 4 more repayments before they could look into this - by this point the weddings etc will be over.

    I am thinking of applying for a loan with Ulster Bank for £1300 repayable over 2 years (repayments are £65 a month). This would get me out of my overdraft and mean that I am able to start afresh for what are going to be 3 expensive months (i'm looking at £300 next month for one stag do alone). I'm cutting out all my other spending such as going out so i know i can do it all within my £1000 income - but will applying for this second loan affect my credit rating or anything like that? What would you recommend? I'm 25 and live at home and have never defaulted on any other payments or been refused loans before. Do you think this is a good solution to my problem? I'm just frustrated that i can't get out of my overdraft at the moment (which i would look to cut down should i get the loan).

    • Post Points: 35