The Fixer: paying off summer debt

Have you been left out of pocket due to poor service or sharp practice? Do you have a money problem that won't go away?

It can seem impossible to get a fair result when you are battling a financial issue alone. But never fear! The AOL Money Fixer is here to help.

Dear Fixer,

I went a bit over the top with my spending while on holiday in Spain this year and am now about £1,000 overdrawn.

I am paying my bank, the Co-operative, about 19% in interest on my overdraft. Hopefully, if I can get a bit of overtime, I can pay the debt off in the next six months.

Is there anything I can do to pay less interest on it during that time? Thanks for your help.

M Price, London

Dear Mr Price,

Most banks charge double-digit interest, even on arranged overdrafts. But you could still make big savings by switching your current account.

Nationwide's FlexDirect account, for example, offers new customers a free overdraft facility for the first 12 months. However, you must pay in at least £1,000 a month to qualify.

Alternatively, use a money transfer credit card, such as Virgin Money's 0% balance transfer card, that allows you to transfer money into your account and pay the debt off on the card, interest free.

Just remember to take advantage of the online tools designed to help you work out for which cards you are likely to qualify as a customer before applying.

Otherwise, you risk being declined for lots of cards, which can damage your credit score.

Finally, whatever you decide to do, pay off as much of the debt as you can afford every month. That way, you will be debt free as quickly as possible.

The Fixer

Whatever your financial problem, write to themoneyfixer@aim.com and The AOL Money Fixer will get on the case.