Opinions Please - Debt Shuffling

nicki_2

I currently have the following debts :

• Natwest Credit Card
  • Credit limit £4500
  • Current Balance £2727.41 (Minus this months payment I made today)
  • APRs are approx (monthly amounts on statement x 12, - they've recently put their rates up)
    • Purchases - 20.832% (£2381.91 outstanding)
    • Balance Transfers - 20.832% (£345.00 outstanding)
    • Cash - 24.9% (NOTHING OUTSTANDING) and a 3% fee
  • Repayments are approx £60 a month
• Halifax Credit Card
  • Credit Limit £1500
  • Current Balance £1393.30 (minus this months payment)
  • APR is 0% on BT until 4/10/9, then its 16.94% according to my current statement.
  • Repayments are approx <£20 a month
• Natwest Overdraft
  • "unarranged rate" of 29.6% APR
  • Current balance : £1909.56 plus spending today.
  • Currently costing me £30 a month in interest charges.

I can't apply for more credit as I'm not currently employed and I don't want it anyway (I've already dropped my Natwest credit card limit and overdraft amount)! I would just like your opinions on the option of having a cash advance of £1000 from my Natwest CC to my Natwest Bank account, therefore effectively halving my overdraft amount. By my calculations it would save me £10 a month in interest charges even with the increase in repayments to the credit card and at the moment I'm more bothered about the monthly costs of things than the over all cost! Does that make sense?

GeorgeUK

Might be worth contacting natwest to have the overdraft interest rate reduced. They may do so, but if not you could always ask them if the cash advance is a cheaper option as the interest is less. May be worthwhile asking for confirmation of the cash advance rate before doing it so they can see that it would be cheaper for you to just transfer funds.