i need help!!!

dcy_2

hi all, im stuck in a rut, and need some advise on ways to get out.
i have the following debts-
1) a loan with abbey, with 39 payments of £215 remaining
2) an overdraft of £850, which is maxed out.

I owe £120 on the loan in arreas, and i get charged £10 a month for being overdrawn.
At the mo, due to the weather and other factors im not working everyday, as im a brick layer, and work has dried up. Im basically after some help juggling things around a bit, till im back on my feet again.
I hvae also just recived a credit card from abbey with a £2500 limit, 0% balance transfur for 6 months and minimum payment 2.25%

gailey_2

What about using credit card to pay loan arrears and overdraft as you got 6months intrest free so pay 850+120 then keep rest for emergancies.
Have you signed up for jobseekers or looked at benefits and retraining governemnets now offreing?
Maybe hit job centre and agencies.
Also some lenders allow repayment holiday on loan so might be worth talking to abbey about that option.
Good luck im sure experts be along soon

dcy_2

gailey wrote: »

What about using credit card to pay loan arrears and overdraft as you got 6months intrest free so pay 850+120 then keep rest for emergancies.
Have you signed up for jobseekers or looked at benefits and retraining governemnets now offreing?
Maybe hit job centre and agencies.
Also some lenders allow repayment holiday on loan so might be worth talking to abbey about that option.
Good luck im sure experts be along soon

That is what i was thinking of doing, but wondered weather it was the best route, is there likly to be any hidden charges by doing this?
Im going to sign on tommorow, and i currently trying to track down a copy of my CV.
I think it is time i do retrain, as this happens to me every other year really, but as im getting older, the debts are getting bigger!

GeorgeUK

What card did you get dcy?
Most cards do not allow transfers to current accounts or overdrafts - this is seen as a money transfer and you will usually be charged interest for this.

Cards which allow money transfers as part of a 0% promotion are known (online) as allowing "super balance transfers".

dcy_2

it is a abbey credit card, i also have my loan and current account with them

dcy_2

it says-
0% on balance transfers (min £0.00)
0% on cash transactions (min £0.00)
0% on credit card cheques (min £0.00)

could someone explain that to me?

GeorgeUK

It looks like Abbey do NOT do super balance transfers. If you were to transfer the money to your overdraft, you would be charged at a higher interest rate than for purchases.

This link shows cards that allow SBT's.
http://www.stoozing.com/sbt.php

Do you have an egg card or a mint card? I've heard of people using these as a "mule" as on some of their cards you can withdraw cash from a creditcard without being charged for it, so you could do a balance transfer to one of those cards.

If not, then you may be able to apply for another card, but you shouldn't apply to too many places at once as this can impact your credit score. You can have about 3 credit checks in a 6 month period so you may be better to try waiting a while if you have just applied for this card. 6 months isn't really that long though so i'm not sure if they would have given you that as an existing customer rather than doing a full credit check.

You can check your credit file (and how many credit checks you've had) free at experian (if you cancel within 30 days).

Hope this is of some use.

GeorgeUK

0% on cash transactions (min £0.00)

If this is what they have said, then it may actually be okay, but this isn't usual for abbey. I'd phone them to see if you can do a balance transfer to your overdraft and confirm that it will be 0% with no charges.

It looks like you can do it if that's what they say, but i would ask for confirmation and be very explicit about what you are asking for. Take a note of the time of the call and who you are speaking to - you may need it later.

dcy_2

i have no other cards, and have never applied for one either... Like you said, i think this was given to me as an existing customer, it was done while i was in the branch, so was not just a letter in post.

dcy_2

GeorgeUK wrote: »

If this is what they have said, then it may actually be okay, but this isn't usual for abbey. I'd phone them to see if you can do a balance transfer to your overdraft and confirm that it will be 0% with no charges.

It looks like you can do it if that's what they say, but i would ask for confirmation and be very explicit about what you are asking for. Take a note of the time of the call and who you are speaking to - you may need it later.

this is how it is written in the letter in front of me, do you think it is worth going to the bank, or over the phone be ok?

GeorgeUK

Do you have the card yet?
You usually need to phone them to activate the card so i would just phone them.

If you do get the card though, remember that you shouldn't use it - the lowest interest debt gets paid off first so anything with a igher interest rate like purchases will be building up the interest until the card is cleared

It sounds like it is okay, but i would definately get confirmation first as Abbey is not known for these types of offers.