Pay off overdraft with Credit Card

skysky69

Can anyone tell me whether this is a good idea - I keep getting offers of balance transfers on my credit cards for a low interest rate, my overdraft which stands at about £1600.00 is at about 22.9% apr so I was thinking that it would be better to pay it off with some of these balance transfer cheques they keep sending me?

Seaxwyn

Hi there, yes it seems very sensible to transfer your overdraft onto a credit card if you get a good low interest rate - so long as you don't run up the overdraft again of course. And remember that transferring debt isn't 'paying it off' - you do still need to pay it off once it's on the credit card. Good luck!

liss123

hi, im no expert on finances... just be careful i transfered some money from my credit card to bank account then later found out it was a high interest rate for the life of the card balance.

binty

It's definitely a good idea if the interest rate is much lower, is it a low rate for the life of the balance, or a low rate for x many months?

I would also cancel the overdraft once you have paid it off, so you're not tempted to run it up again!

GeorgeUK

skysky, it may also depend on what card you are transferring to. Some allow "super balance transfers" which are basically money transfers, but you won't get charged at the higher interest rate that other cards charge for maoney transfers.

danwms

I am about to do a similar thing,.