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  • FIRST POST
    • Nakatomi
    • By Nakatomi 14th Nov 17, 11:13 PM
    • 4Posts
    • 0Thanks
    Nakatomi
    Credit Card To Pay Off Overdraft
    • #1
    • 14th Nov 17, 11:13 PM
    Credit Card To Pay Off Overdraft 14th Nov 17 at 11:13 PM
    Can you use a credit card to pay off your overdraft so much a month to lower the fees, I am with Lloyd's and I have a 800 overdraft which after so many days I am using once my rent bill payments have been taken out. But my daily fees are 1.12-1.13 each and I have found out that they do not take it out at the right time, it's supposed to be after midnight or between that and 4am but some days on my statement don't show anything. Then I will get 2 fees taken out on one day and one fee transaction will say it was for the missing date, all in it's 33 a month for me unlike 15 I used to get charged, I just got a credit card from Lloyds 0% for 29 months and I was wondering if could be used to pay it off but I am not sure if the fees each month on that would be higher.

    I want to get rid of my overdraft completely along with some small debts I still have and this credit card will help me as I only want to use it on small purchases like shopping for food etc.
Page 1
    • YorkshireBoy
    • By YorkshireBoy 14th Nov 17, 11:22 PM
    • 29,527 Posts
    • 17,326 Thanks
    YorkshireBoy
    • #2
    • 14th Nov 17, 11:22 PM
    • #2
    • 14th Nov 17, 11:22 PM
    You won't be able to use the credit card directly - you'd need a money transfer* (not a balance transfer) card for that.

    But what you can do is spend your way out of your overdraft by putting all essential spend on the Lloyds card and paying just the 1% minimum payment, thereby artificially building your current account balance up.

    I presume because you're looking to restructure the debt that earning more and/or spending less aren't options?


    * eg MBNA, Virgin, etc.
    • Nakatomi
    • By Nakatomi 14th Nov 17, 11:24 PM
    • 4 Posts
    • 0 Thanks
    Nakatomi
    • #3
    • 14th Nov 17, 11:24 PM
    • #3
    • 14th Nov 17, 11:24 PM
    Can you explain on what you mean "Spend you way out of my overdraft please"

    I would like to get my overdraft off completely so I can save on fees and not be in all the time and also pay off other small debts I have built up so I can save what I pay each month on them like my Argos Card that's currently 300 in debt on it.
    • YorkshireBoy
    • By YorkshireBoy 14th Nov 17, 11:32 PM
    • 29,527 Posts
    • 17,326 Thanks
    YorkshireBoy
    • #4
    • 14th Nov 17, 11:32 PM
    • #4
    • 14th Nov 17, 11:32 PM
    Can you explain on what you mean "Spend you way out of my overdraft please"
    Originally posted by Nakatomi
    If you spend 200 a month on essentials (eg fuel and groceries), then the minimum payment is 1%, eg 2. The other 198 stays in your current account. After 4 months you don't have an overdraft any more...but you have 800 of credit card debt at 0%, and just over 2 years left to clear it.

    Figures for illustration purposes only...you may find the Lloyds card has a 5 or 25 per month minimum if 1% is less than this.
    • Dobbibill
    • By Dobbibill 15th Nov 17, 6:43 AM
    • 2,449 Posts
    • 3,553 Thanks
    Dobbibill
    • #5
    • 15th Nov 17, 6:43 AM
    • #5
    • 15th Nov 17, 6:43 AM
    Most credit cards don't allow a BT from an Argos storecard.

    A MT card would put funds into your current account to move both debts onto the card.
    Here's an eligibility checker for MT cards - be mindful it's only a guide and actual applications may differ from the results.
    https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.238301956.501770669.1507840078-1037682649.1480869123

    YorkshireBoy has given you a good option if you already have a promo offer on a purchases card.

    You will have 3 daily fees debit at the same time on your Lloyds account if it's a weekend as they will collect Sat, Sun & Mondays fees at the same time with the relevant date for each amount.

    If none of the above are suitable, consider posting a SOA on the DFW board for hints and tips on where savings can be made in your budget to free up funds to clear your overdraft ASAP, the less overdraft - the lower the daily fees.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • Kim_13
    • By Kim_13 15th Nov 17, 12:20 PM
    • 1,340 Posts
    • 1,707 Thanks
    Kim_13
    • #6
    • 15th Nov 17, 12:20 PM
    • #6
    • 15th Nov 17, 12:20 PM
    As others have highlighted, you'll need a Money Transfer card unless you're willing to use the workaround suggested by YorkshireBoy.

    This article will give you a round up of the options available: https://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs
    Sealed Pot 11 #520 ~ /100
    VSP 2017 #9 ~ 108.83/250.00
    CCCC 2017 #1 ~ 200.95/120.00

    I'm a Board Guide on the Savings and Investments , Budgeting and Bank Accounts , Credit Cards and Marriage, Relationships and Families boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. Please remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this.) Any views are mine and not the official line of MoneySavingExpert.com
    • anto164
    • By anto164 15th Nov 17, 2:47 PM
    • 126 Posts
    • 61 Thanks
    anto164
    • #7
    • 15th Nov 17, 2:47 PM
    • #7
    • 15th Nov 17, 2:47 PM
    Surely you can switch current accounts to one which will give you a decent interest free overdraft, however, i doubt there are many around that will give that level of interest free OD.
    • Kim_13
    • By Kim_13 15th Nov 17, 4:30 PM
    • 1,340 Posts
    • 1,707 Thanks
    Kim_13
    • #8
    • 15th Nov 17, 4:30 PM
    • #8
    • 15th Nov 17, 4:30 PM
    Surely you can switch current accounts to one which will give you a decent interest free overdraft, however, i doubt there are many around that will give that level of interest free OD.
    Originally posted by anto164
    First Direct and Nationwide FlexDirect are the usual go to accounts in this situation, though as you say acceptance and a sufficient overdraft are not guaranteed. This article has a section on the best accounts for an overdraft: https://www.moneysavingexpert.com/banking/compare-best-bank-accounts#overdrawn

    First Direct/HSBC are known to be picky as to who they accept, so would be unlikely if the poster can't get Lloyds to offer them a way to restructure the debt.

    OP, have you called Lloyds? The majority of posters with the Lloyds overdraft problem have reported being offered half price for 3 months, so 1p per day per 14 instead of 1p per 7. This is at least something to give you longer to work on clearing/moving the overdraft.
    Sealed Pot 11 #520 ~ /100
    VSP 2017 #9 ~ 108.83/250.00
    CCCC 2017 #1 ~ 200.95/120.00

    I'm a Board Guide on the Savings and Investments , Budgeting and Bank Accounts , Credit Cards and Marriage, Relationships and Families boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. Please remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this.) Any views are mine and not the official line of MoneySavingExpert.com
    • chesky
    • By chesky 15th Nov 17, 5:17 PM
    • 836 Posts
    • 1,190 Thanks
    chesky
    • #9
    • 15th Nov 17, 5:17 PM
    • #9
    • 15th Nov 17, 5:17 PM
    Totally agree with Kim, or you could try actually going into a branch and discussing it with someone there.
    • Nakatomi
    • By Nakatomi 15th Nov 17, 9:19 PM
    • 4 Posts
    • 0 Thanks
    Nakatomi
    So I was thinking as YorkshireBoy said we spend about 200 on shopping e.g food etc we don't have a car so no fuel costs instead of paying it in cash we would use the credit card for that and then use the cash to get the overdraft down.

    Below is the card I got

    It's the very first one the Lloyds Bank Platinum Card 29 months 0% APR (I can't place a link but if you go to lloyds website it's the very first card under ALL CARDS

    Can I do the above with this card, even if I cut my fees down it would be great, I will pop into a branch Saturday morning and speak to someone about maybe slashing the fees down for 3 months see if they can do that for me as well.
    • YorkshireBoy
    • By YorkshireBoy 15th Nov 17, 9:25 PM
    • 29,527 Posts
    • 17,326 Thanks
    YorkshireBoy
    Can I do the above with this card
    Originally posted by Nakatomi
    I'd already checked out the card particulars prior to making the original suggestion in my post above.
    • Dobbibill
    • By Dobbibill 15th Nov 17, 9:29 PM
    • 2,449 Posts
    • 3,553 Thanks
    Dobbibill
    Be mindful it is advertised as up to 29 months for purchases. You may be offered a lesser length of time.

    Make sure you make minimum payments too - otherwise you would lose your 0% offer.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • YorkshireBoy
    • By YorkshireBoy 15th Nov 17, 9:37 PM
    • 29,527 Posts
    • 17,326 Thanks
    YorkshireBoy
    Be mindful it is advertised as up to 29 months for purchases. You may be offered a lesser length of time.
    Originally posted by Dobbibill
    OP already has the 29 month card...
    I just got a credit card from Lloyds 0% for 29 months
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