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Overdraft

Help and discussions for strategies to get out of debt
bruncher
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Overdraft

#232729

Postby bruncher » June 29th, 2019, 12:37 pm

I have a friend who has a big overdraft, which is very expensive. I suggested they ask their bank for a personal loan, to pay off the overdraft. The bank has apparently refused this request. Does anyone have any suggestions for a solution? I said they should switch banks somewhere more helpful. The person concerned does have a regular salary from a first job following University.

Alaric
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Re: Overdraft

#232737

Postby Alaric » June 29th, 2019, 1:25 pm

bruncher wrote:The bank has apparently refused this request.


Banks reserve their best rates for those who don't need to borrow.

The aim should be to reduce the headline rate on the overdraft. If it's possible to borrow elsewhere at a cheaper rate, a 0% credit card perhaps, then use the proceeds to reduce the overdraft. Another bank, as you suggest, may offer better terms.

AsleepInYorkshire
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Re: Overdraft

#232773

Postby AsleepInYorkshire » June 29th, 2019, 5:14 pm

bruncher wrote:I have a friend who has a big overdraft, which is very expensive. I suggested they ask their bank for a personal loan, to pay off the overdraft. The bank has apparently refused this request. Does anyone have any suggestions for a solution? I said they should switch banks somewhere more helpful. The person concerned does have a regular salary from a first job following University.

I'd suggest forming a plan to rid themself of the overdraft and the bank. The two don't have to be done together.

This link may offer some alternatives?

https://www.money.co.uk/current-account ... rdraft.htm

AiY

AsleepInYorkshire
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Re: Overdraft

#232777

Postby AsleepInYorkshire » June 29th, 2019, 5:49 pm

AsleepInYorkshire wrote:
bruncher wrote:I have a friend who has a big overdraft, which is very expensive. I suggested they ask their bank for a personal loan, to pay off the overdraft. The bank has apparently refused this request. Does anyone have any suggestions for a solution? I said they should switch banks somewhere more helpful. The person concerned does have a regular salary from a first job following University.

I'd suggest forming a plan to rid themself of the overdraft and the bank. The two don't have to be done together.

This link may offer some alternatives?

https://www.money.co.uk/current-account ... rdraft.htm

AiY

Might be better?
https://www.moneysavingexpert.com/banki ... -accounts/

AiY

GoSeigen
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Re: Overdraft

#232927

Postby GoSeigen » June 30th, 2019, 3:01 pm

bruncher wrote:I have a friend who has a big overdraft, which is very expensive. I suggested they ask their bank for a personal loan, to pay off the overdraft. The bank has apparently refused this request. Does anyone have any suggestions for a solution? I said they should switch banks somewhere more helpful. The person concerned does have a regular salary from a first job following University.


Stop going out for a month or two?


GS

Gersemi
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Re: Overdraft

#232969

Postby Gersemi » June 30th, 2019, 7:19 pm

My first question would be is the overdraft a hang over from their university days or has it built up since they started work?

The starting point has to be living within their means, which means sorting out the budget and reducing costs where possible, all the stuff like shopping around for insurance, gas & electric etc and throwing as much as possible at the debt. More borrowing to pay off the debt won't work until the basics have been sorted out.


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