A question on interest rates overdraft Vs credit card

fimonkey

Hi, Can someone help me with my sums please?

I have an overdraft with the Halifax of £1000, (cleared every month when my salary is paid, but hen back into it again every month, am paying about £100pm off of this balance). The interest rate is £15.9%AER or 1.24% per month.

I also have a credit card which has offered me 0% on balance/money transfers with a one off fee of 3% until May 2009.

If I transfer my £1000 overdraft to the credit card it will cost me an extra £30, and by May I should have saved £600 to pay it off (and then transfer the rest back to my overdraft for the remainding 4 months).

Is it therefore worth doing? Or is it best just to keep this debt on my current account and paying it off? I generally stay in credit for about 6-10 days at the beginning of each month, and I'm not sure how to calculate the interest (the debt is a new amalgamation of stuff so can't look at past statements to see).

Many thanks in advance.

Fi

fimonkey

Is this question too hard??

rb10

As you are able to bring your account into credit each time your salary is paid, you could just use any ordinary credit card for your spending. Spend on the card during the month, then pay it off in full once your salary comes in. That way, you would never pay a penny in interest.

Depending on the exact credit card concerned, you are unlikely to be able to pay off your overdraft from a balance transfer. Balance transfers are normally (but not always) only from other credit cards.

YorkshireBoy

How much debit interest have you incurred in each of the last 3 months?

YorkshireBoy

fimonkey wrote:

Is this question too hard??

Might have been better on either the credit card or current account board.

fimonkey wrote: »

The interest rate is £15.9%AER or 1.24% per month.

...I'm not sure how to calculate the interest

Debit interest is calculated daily as...

closing daily balance x 1.24% x 12 / 365

Sum up all the days' interest in the statement period to calculate the monthly debit interest payable.

fimonkey

Thanks for al the replies, .. good point re monthly spend putting onto credit card, D'oh! Why did't i think of that?

Thanks again.