Can this be done?

StressedSteph

Hi all,

I currently have £7000 credit card debts and a £2500 overdraft (usually maxed )

My husband has at the moment a regular wage of £600 per week and I work part-time earning about £500 per month. Last month I paid £1000 of extra payment to the credit cards so we are getting them down as quickly as possible.

My credit is still good as far as I know, so I wondered if it was at all possible to get a 0% credit card to pay off my £2500 Overdraft ??

What with all the talk of banks cancelling overdrafts and the mad interest they charge me, I thought it would be a better idea to put the overdraft onto a 0% card and then get the bank to reduce my overdraft to say £200 for emergencies and then concentrate on getting that 0% card paid off.

The only problem is, how do I get a Credit card to do a Balance transfer to my current account, isn't that classed as a cash withdrawal so would'nt come under the 0% category????

If I am being dumb, or if someone knows how I can do this I would be very grateful. Otherwise I will have to put all my overpayments for the next few months onto my overdraft instead.

Any advice would be appreciated.

xxStressedStephxxx

pebblespop

some credit card companies will do a balance transfer into your account. i know virgin can do this.

i tried to do it with sky card but they wouldn't let me so i had to use a credit card cheque @ 0%.

they will charge you a fee for balance transfers - usually around 2-3%

GeorgeUK

There are cards that allow money transfers at 0% as part of a promotion. These are known as "super balance transfers" on the internet. With these cards, you can transfer to either another creditcard or a current account.
http://www.stoozing.com/sbt.php

It may be worth looking at the snowball calculator to see what the best method of repayment is as you do not currently need to worry about your overdraft. Just focus on the highest APR first.
http://www.whatsthecost.com/snowball.aspx

StressedSteph

Thanks for your advice all.

I just got my new Virgin Credit card through, for a balance transfer, to get rid of my 16.4% CitiBank credit card.

I spoke to them and they have also agreed to pay off my overdraft at the 0% for 15 months also.

I am so relieved as the interest on my overdraft was not pretty. The balance transfer fee is equal to just one months interest from my Barclays overdraft.

I just have to make sure that once the money goes into my account, that I go straight to Barclays and get them to reduce my £2500 overdraft down to £100 (for emergencies).

Everything is now on my three credit cards. If I snowball correctly they should all be paid of just before the interest rate starts on the Virgin card.

Lets hope I manage it xxxx

GeorgeUK

One thing i would advise is to make sure you have a directdebit set up on the virgin card to pay the minimum each month and to make sure that the first payment goes though ok - you will probably get a letter confirming that the DD is set up.

When it comes to snowballing, you should note that you will probably only need to pay a minimum of £25 for the 2nd - 15th months. Hopefully this will enable you to put a dent in some of the high APR debts.

If you manage to clear a card, don't close it unless you are sure you won't need it. Some cards offer existing customers incentives such as 0% BT for 6 months or low interest life of balance offers - if you haven't cleared all the debt after 15 months, you may be able to transfer some of the debt to your empty cards.