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Continue paying minimum payment or transfer to overdraft? watch

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    Iv got a credit card, bad idea i know! and i owe about £960, my interest rate is something like 17%. Minimum payment is £25 per month, usually £11 of this is just interest!

    So iv been thinking, iv got an interest free overdraft, should i pay my credit card bill in full therefore its paid, no more interest can accumulate and ill be £25 a month better off for the next 4/5 years. This would mean losing £960 out of my bank.
    Or should i continue paying the monthly payments?

    I plan on never using it again.

    What would you do? (other than not get a credit card in the first place!)
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    Fairly obviously you should clear the credit card! I pay off all my cards in full each month. The overdraft is interest free, so isn't it pretty straightforward as to what to do?
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    But losing £960 out of my account in one go would hurt! hence the asking, its not an obvious decision.
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    use the overdraft tp pay off the card
    then pay what you were paying each month to your bank to pay off the overdraft
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    You've already lost the 960 though, it's not yours, it's the credit card companies. You just haven't paid them yet.
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    You're not losing £960 out of your account, you're taking £960 out of your overdraft. And paying the interest you are paying, added to the interest on the interest, added to the interest on the interest on the interest is going to get a lot more expensive in the long run. Pay off your card and then if you have no choice you can use your credit again - at least you'll then have 56 days interest free on the purchases instead of immediately paying yet more interest.
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    As said above pay off the card from the overdraft then pay that off. You will spend less on interest.

    BUT make sure you DO actually keep paying money in to clear the overdraft rather than letting it sit now there's no pressure to get rid of it.
 
 
 
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