Paying off overdraft help

A question about : Paying off overdraft help

Any advice welcome! I have a 3K overdraft to pay off. I earn just over Ј8K pa. I have been using a budget spreadsheet for years and I stick to it.

I got rejected for a credit card and daren't apply for another. I do have a credit card with zero balance.

I used to keep money in a "savings" account for big one off payments such as car insurance, car tax etc, but thought that if I keep it all in the one account I'll be better off when the bank calculates the overdraft interest.

I have/earn enough to live on, only because my hubby-to-be supports me. We are soon to move house due to being in a clearance area, which could be a good move. But I would really like to be able to contribute fairly to the new mortgage. Any ideas????

Best answers:

• How much could you afford to pay off each month? Ј50, Ј100? Could your fiance apply for a 0% card to pay off your overdraft (Egg cards are good for this, they will transfer funds straight into your bank account for this purpose, and they usually give good limits). You could look after the repayments on the card and he could apply for another 0% card when the time comes.
  It may be your wage is the reason you have been turned down for the other 0% card. Does you fiance earn more? It doesn't really matter whether the card is in your name or his, if you are getting married you're in it together now! You should budget together, taking into account both your wages. Get him to follow your spreadsheet!
  If you can pay off Ј150 a month and keep switching the debt between cards, you can have it paid off in 20 months. Or you could get a 3.9% for life of balance card (like Capital One) and put the debt on that. It will accrue some interest but not as much as the bank and you won't have to worry about switching the debt over to another card. Just don't spend on a card like that cos the purchases will be paid off last, after all the balance transfer and it will accrue masses of interest (not at 3.9% - more like 18.9%!) in that time.
  Having a separate account for annual costs (tax, car insurance etc) is a good idea and when you are not overdrawn it will be worth doing that again. But while you are overdrawn it is right to have it all in one account to save on interest.
  Good luck in your marriage!