Credit card or overdraft?

bellabooski

Hi Everyone,
Forgive me if this sounds as though I'm a bit thick but I am mathematically challenged when it comes to my finances.
My hsbc credit card bill is £1220 due by 18th Dec
My hsbc bank acct balance is £1298 (plus I have an unused £600 overdraft)
As it's Christmas and things are a bit tight would it be better to pay off the whole balance of my credit card and dig slightly into my overdraft for a couple of weeks (interest rate 19.9%) OR pay slightly less on the credit card (say £1000) interest also 19.9%?
Any help and advice would be very much appreciated.
Kind regards
Bella

opinions4u

I would personally get rid of card debt and then work on the overdraft.

A key question is how long will it then take you to repay the overdraft, and will you be able to achieve this before it is next renewed (or withdrawn by the bank, which seems to be happening more often).

Another plan, if you're a disciplined soul, would be to move the card balance to a 0% credit card deal (likely fee of 3%ish) and reduce it that way.

If you follow that plan, be disciplined, don't use the card for any other reason, and once your debt is nil close the account!

Useful link:

http://www.moneysupermarket.com/cards/

If you fear you're not the disciplined type, don't do the transfer though!

bellabooski

Thankyou so much Opinions4U for your very prompt reply.I will probably only be overdrawn for a couple of weeks if that, then things will be back to normal,so I will take your advice and pay off the credit card and then pay off the overdraft (which will probably amount to no more than £200) asap.
Many thanks for your help it is very much appreciated.
Bella:T

simongregson

You will be better off using your overdraft, because as soon as you don't pay your credit card bill in full by the due date they will charge interest backdated to the date of the transaction. With your overdraft, you will only pay interest for the days you are overdrawn, so if you are going to pay it off in a couple of weeks you will save money overall.

bellabooski

Thankyou SimonGregson will do as you and Opinions4U suggest.It all makes sense now.
kind regards
Bella:T