Overdraft

GalwayDonegal

Could you help with some advice. I have a 1250. My wages are 1250.so each month my wages go in to my account and each month then I'm straight into my overdraft and can't seem to get out of that cycle.

I also have a 6k credit union loan that I'm trying to pay off 50 euro a month against.

I'm just stuck in a rut. If I could somehow get the overdraft down and rid of it and get the credit union paid off.

My head is fried

I was wondering should I take out a 1250 loan from the bank and pay back each month for a year..id be paying back 96 euro a month on this the for a full year..I just need the overdraft to go..or am I doing wrong trying to take out a loan

ED E

How much p/m are you paying in Overdraft fees? Thats probably crucifying you.

If you had a history with the credit union that'd be a good way to clear it. If not, I'd probably have a chat with MABs as a first port of call.

dudara

Moved to the Banking forum

dudara

GalwayDonegal

No the credit union is not an option. Shortly after I took the 6k loan out I was made redundant and paid nothing on the loan for 2 years so that is not an option

I could take out a loan with aib and repay 100 plus euro every month but at least the overdraft would be cleared.

Not sure what to do

Nervous Wreck

If you're capable of paying back 100 per month, then just leave 100 extra in your current account every month, thereby reducing the amount of your overdraft.

Stheno

GalwayDonegal wrote: »

No the credit union is not an option. Shortly after I took the 6k loan out I was made redundant and paid nothing on the loan for 2 years so that is not an option

I could take out a loan with aib and repay 100 plus euro every month but at least the overdraft would be cleared.

Not sure what to do

The non payments on the credit union loan may show up on a credit check aib will do

Lycoge

Nervous Wreck wrote:

If you're capable of paying back 100 per month, then just leave 100 extra in your current account every month, thereby reducing the amount of your overdraft.

Exactly. Then every few months, reduce the available overdraft limit by a few hundred with the bank to avoid the temptation to spend the surplus in overdraft.

If you would find that difficult. Then maybe opening a separate savings account might work better. Transfer 100 a month into that, when it builds up, pay a sum off the overdraft and reduce the limit.

Lickin2me

Ok u sound somewhat screwed. If u dont own ur home. Then default credit union. Nothing they will do. If u own ur property ask credit union loan cover overdraft. Botton line if u have no assests default on payments. U will get a lot letters just dump them.

popa smurf

I think myself you should never have been given an overdraft, its designed specifically for buissness and don't really suit people on a fixed income. I would tell the bank that I was miis sold the product and to come to some arrangement with them.

Nervous Wreck

popa smurf wrote: »

I think myself you should never have been given an overdraft, its designed specifically for buissness and don't really suit people on a fixed income. I would tell the bank that I was miis sold the product and to come to some arrangement with them.

Laughable advice.

GalwayDonegal

Thanks for letting the advice but think I'll will try that to reduce the available overdraft.

Lycoge wrote: »

Exactly. Then every few months, reduce the available overdraft limit by a few hundred with the bank to avoid the temptation to spend the surplus in overdraft.

If you would find that difficult. Then maybe opening a separate savings account might work better. Transfer 100 a month into that, when it builds up, pay a sum off the overdraft and reduce the limit.

Get a second job just until it's paid off? If you work 9-5 for example you could do some bar work or waitressing in the evenings just short term to pay off the overdraft?