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Pay overdraft via balance transfer??
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neenyrules
Posts: 18 Forumite
in Credit cards
Hey, i have an Egg Card (£500) - nothing on it, Barclaycard (£2200) - £1000 on it, and now have just applied and accepted for an MBNA 5.9% life of balance transfer card (£2000)
Im looking to move the Barclaycard debt over to save money, and also have, on average, a £350 overdraft debt. Is there any way i can pay off the overdraft with the cards?
I was thinking that the best way is to transfer the barclaycard debt to MBNA, and then on either the Egg or Barclaycard, withdraw £350 cash to pay overdraft, and then quickly transfer that new debt on one of those cards to MBNA (must do it in under 30 days from opening).
That would leave me without an overdraft, and a single debt of roughly £1350 on the MBNA at 5.9% till i pay it off (fairly quickly)
Good idea? or is this not possible? THanks for any help :beer:
Im looking to move the Barclaycard debt over to save money, and also have, on average, a £350 overdraft debt. Is there any way i can pay off the overdraft with the cards?
I was thinking that the best way is to transfer the barclaycard debt to MBNA, and then on either the Egg or Barclaycard, withdraw £350 cash to pay overdraft, and then quickly transfer that new debt on one of those cards to MBNA (must do it in under 30 days from opening).
That would leave me without an overdraft, and a single debt of roughly £1350 on the MBNA at 5.9% till i pay it off (fairly quickly)
Good idea? or is this not possible? THanks for any help :beer:
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Comments
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neenyrules wrote: »Hey, i have an Egg Card (£500) - nothing on it, Barclaycard (£2200) - £1000 on it, and now have just applied and accepted for an MBNA 5.9% life of balance transfer card (£2000)
Im looking to move the Barclaycard debt over to save money, and also have, on average, a £350 overdraft debt. Is there any way i can pay off the overdraft with the cards?
I was thinking that the best way is to transfer the barclaycard debt to MBNA, and then on either the Egg or Barclaycard, withdraw £350 cash to pay overdraft, and then quickly transfer that new debt on one of those cards to MBNA (must do it in under 30 days from opening).
That would leave me without an overdraft, and a single debt of roughly £1350 on the MBNA at 5.9% till i pay it off (fairly quickly)
Good idea? or is this not possible? THanks for any help :beer:
MBNA allows transfers of funds direct to your Bank Account at Balance Transfer rates. So I recommend that you ask them to transfer as much as possible to your Bank Account. Usually the maximum is 95% of the Credit Limit, so £1900 in your case.
This will pay off your £350 overdraft leaving your Bank Account with £1550 Credit Balance.
From this use £1000 to pay off your Barclaycard, then you will have a Credit Balance of £550.
Now take this £550 and put it into an ISA or High Interest Savings Account and watch it accrue interest whilst you have got all your debt on a nice LOB deal.
Good Luck.0 -
thanks for that info, excellent!
Problem is, the barclaycard transfer has already been put on my application form so that transfer is already going ahead.
Can i still get a benefit from all this? How do i instruct MBNA to pay money direct into my account? Can this be done online or do i have to phone them?0 -
neenyrules wrote: »Problem is, the barclaycard transfer has already been put on my application form so that transfer is already going ahead.
Can i still get a benefit from all this? How do i instruct MBNA to pay money direct into my account? Can this be done online or do i have to phone them?
Not really a problem. Let the Barclaycard transfer go through. You still have up to £900 available on MBNA that can be transferred to your Bank Account to clear your overdraft and\or stooze with.
You do need to call MBNA and ask them to transfer the money to your Bank Account. They don't always make it clear that you can do this, but its not usually a problem if you request it over the phone.0 -
thank you, your replies have made my day
many thanks again, will get on the phone to them as soon as possible!0 -
neenyrules wrote: »thank you, your replies have made my day
No problems, Good Luck and let us know how you get on :money:0 -
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YorkshireBoy wrote: »I can see the logic in that if the money was borrowed at 0% (or some other low rate) Nick, but the cost of borrowing here is 5.9% APR.
I take your point YB, but a decent ISA should get more than 5.9% without having to pay tax, so there should be some (although not a great deal) profit there.
I was just thinking that the OP could get maximum benefit from the promotion that they have chosen, but it maybe be safer and easier to just SBT the funds to clear the actual debts.0
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