Stop paying overdraft charges!
In my pre-spy days before I got my financial act together - my overdraft was an almost constant companion. But there's really nothing more gloomy than slipping into the red every single month.
If this sounds like you, the time has come to organise your current account and get rid of your overdraft forever.
One strategy is to try and spend a little less each month, gradually chipping away at your overdraft bit by bit until it's completely gone.
However some of you may struggle with this method if you're prone to going overdrawn every month, and could easily find that after months of trying to clear your debt, you're right back where you started or worse. And even if you're doing a good job of scaling back your overdraft, you'll probably be paying an ultra high interest rate until your balance has completely disappeared. Bear in mind that rates of 10% to 20% aren't uncommon on most authorised overdraft borrowing, so this is most definitely NOT a cheap way to borrow.
But don't give up. You can do a lot better than tightening your belt and hoping for the best. Here's a way to clear your overdraft, and as long as you play by the rules, you won't have to pay a single penny in interest!
Use a credit card
A handful of credit cards will allow you to pay off your overdraft by transferring money from the card into your current account. And this is the best bit: Money transferred in this way will attract a 0% rate for a limited period, so 100% of your payments will go towards clearing your debt - allowing you to get rid of it quickly. The market-leading Virgin Money Credit Card, for example, offers a great introductory 0% deal for 16 months on money transfers. This should allow you plenty of time to get to grips with your debt.
Written by The Spy, 20 May, 2009 - 12:24