Overdraft onto credit card?

EDITION

Hi,

I have a £1750 overdraft with HSBC it was interest free (student) but now it is being charged interest.

I get my wage paid into this account so it goes from being in credit to going to the £1750 each month gradually through the month. The average interest charge seems to be about £20 a month.

I'm wondering wether to try and transfer this to a 0% credit card and pay it off....

Does this sound a better option?


Cheers

YorkshireBoy

By how much are you reducing the overdraft each month? £30..£50..£100..or more?

Or are you just standing still?

EDITION

Standing still at the moment but could pay some off every month if i was good.

My thinking was put it on a card with a min. payment and add say £50 a month to it........

Or would you say be harder on myself and just pay it off my overdraft....

EDITION

Oh forgot to add that i have recently moved jobs so have 10k more a year. This is why i feel able to start paying it off....

masterkay

I think Virgin would be a good one as it lets you BT into a current account (check that) and they are giving 15 months interest free at the minute but have 2.98% fee which would be about £50 so you'd be better off if it is going to take you more than 3 months to pay it off. Just make sure you pay it off as the interest on the virgin card is a lot more also make sure you ditch the overdraft so you don't dip into it again.

If you have a 10k payrise it shouldn't take long to pay it off. I'd consider looking at your budget so you just don't spend what you earn all the time (what happens to a lot of people when they get a pay rise).

Good luck

YorkshireBoy

EDITION wrote: »

Standing still at the moment but could pay some off every month if i was good.

Everyone says that. Gunna do this, and gunna do that. At the moment you aren't. If you were already reducing it I'd say yes, a card *might* help. As it is I don't think it will. Just my opinion mind.

My thinking was put it on a card with a min. payment and add say £50 a month to it........

The minimum payment on a £1,750 CC debt would be £52.50 at 3%. Your extra £50 would mean you were paying £102.50 a month. Do you see where I'm going here?...

You'll reduce your O/D by £102.50 a month without a CC.
Stay in one Friday night a month.
Cut back in other areas.
Switch your regular DD's to the end of the month to minimise debit interest, and that means an extra £20 a month saved...£122.50 per month now coming off the O/D.
Grab yourself some extra hours at work, or take a second job.
The O/D will be repaid in just over a year...or even less, without the temptation a new shiny CC brings.

Or would you say be harder on myself and just pay it off my overdraft....

I think I've answered that question above.

Good luck!


EDIT: Just seen your £10K edit. You don't really have a problem now do you?

EDITION

Yeah just find it difficult to actually pay the overdraft off as its far to easy to see it as money you have left over for the month......


Think im going to just have to say it reduces £150 per month and thats that!!

Idiophreak

masterkay wrote: »

I think Virgin would be a good one as it lets you BT into a current account (check that) and they are giving 15 months interest free at the minute but have 2.98% fee which would be about £50 so you'd be better off if it is going to take you more than 3 months to pay it off.

I switched my HSBC student OD onto the virgin cc on this kinda deal...the good news was that (when I did it, anyway), the min. payment was only £5 a month, which was good - the bad news was that I made hardly any dent in the debt in the 15 months then had to BT it elsewhere...that said, i wouldn't have paid it if it were in my OD, either, so in the OP's case I'd be 12monthsx£20 quid better off, which I guess makes it worth doing...

normanmark

Surely you could look into moving onto one of their graduate accounts? They still retain the interest free overdrafts!