advice on clearing me short term debt

[janedoe06]

I Seem to live in over draft all the time

i'm now €300 in overdraft with a 1400 limit but not getting paid for another 2 weeks so i guess that will have gone up a good bit
my credit card is 1200

i get about 1500 a month gross
and have been putting in money to credit union as well have about 2500 in there

would i be better to clear the credit card or the over draft with the money in the credit union ??
or would i be better to leave the savings in the credit union
and get a loan out from there 6% interest rate and pay back its about 155 a month at the moment for 3,500

Reason for the bad management is i was out sick from work last year and seem to be catching up since,
and i think i do need to hide my credit card, as i only cleared that this year already
What do ye think
am i a hopeless case ??
i dont like living in debt as it would be nice to be able to get more money behind me for that rainy day god forbid if i get sick again

 

[ClubMan]

Have you checked the many existing budgeting/debt management threads and resources on Askaboutmoney? Post a detailed incomings/outgoings budget so that people can suggest areas for improvement. In simple terms you need to reduce/clear your debts and start living within/below your means!

 

[CCOVICH]

Why not just clear the credit card and loan with the CU savings and then start with a clean slate next month?

Draw up a budget by making a list of all your expected outgoings and try to stick to it-then save if possible.

Is it worth your while having some for of insurance in place to cover any time off work due to sickness? It might be worth looking at, but such policies are generally expensive and restrictive IMHO.

As ClubMan says, there are many existing threads that deal with getting out of debt.

You are far from a hopeless case. Best of luck.

 

[oiseog]

Suggest the best way is to use your savings to clear debts and get fresh slate to learn to live within means, saving a little bit as you go. Have been sucked in before with the credit union way of thinking before and all that happens is you keep borrowing to clear debt thinking its ok because you have the savings but the reality is you won't be able to withdraw them on rainy days as they are collateral for loans, and you will be told the only way is to borrow more and keep saving with them. Go for the fresh slate.

 

[ClubMan]

Have been sucked in before with the credit union way of thinking before

Who's talking about "the CU way of thinking" as opposed to using the money held in CU shares/deposits to clear debts since maintaining savings while carrying debt normally does not make sense (mortgage on one's PPR being an obvious possible exception).