Credit Card Question

kezzae

Hi

Just looking for some advice....... We have an overdraft and are £300 over drawn so when my OH wages go in a the £300 will be cleared but we are going round in circles and will be into the overdraft again near the end of the month. We have a Barclaycard Platinum cc which we are paying interest on at 15.9% and its balance is £400. We also have an M&S card with a balance of £950 and 0% int until Aug 09. We were thinking of doing a balance transfer with the Barclaycard, as we have had some BT cheques sent, and paying off the overdraft. This is the only thing we can think of at the moment to get rid of the overdraft, so that my hubbys wages aren't swallowed up each month and to break the circle. Any advice or different solutions would be greatly appreciated.......

YorkshireBoy

The interest on your overdraft is what?...1.7% per month?

The minimum payment on Barclaycard is 2.25%

Where will you find the extra money from each month?

Will you run the overdraft up again?

If you really do want to go the transfer to card route, then consider the M&S Sterling travellers cheque loophole. Buy Sterling travellers cheques from M&S Travel Money (either online, by phone, or from bureaux de change in store) using your M&S card and they're treated as purchases, ie 0% until August 2009. Then simply pay them into your current account (check first that they'll accept them!...but many of them do). The fee, at 1%, is likely to be much cheaper than the Barclaycard cheque fee.

However, if it was me I wouldn't transfer it...I'd tighten my belt, earn more/spend less, and restructure my outgoing payments to minimise the time I was using the overdraft facility each month (thereby also minimising the amount of debit interest charged). After all, and apologies for over-simplifying, £300 isn't a lot of money these days.

IcklePickle_2

Are you planning to clear the M&S card before the 0% ends in Aug?

What is your credit rating like? Could you get a new 0% card for say 12 or 16mths, balance transfer the Barclaycard and overdraft onto it and then clear it before the promo period ends?

Or if you can't clear the balance (£400+£300+BT fees) in that time, what about a low interest rate for the life of the balance? Some cards are offering around 6% - 7% for 'life of balance' transfers. This is a better option if you won't be able to make large payments to clear off the debt before the 0% promos end.

rodent

Agree with YB

Increase income AND
Reduce expenditure

I bet that if you have a wander around your home and put all the things you don't need/ want on ebay you will have at least £1000, this together >income <expenditure would completely wipe out ALL of your debts within a few short months.............This works ....but only if YOU DO IT !!!!


£1650 right now is a mountain ....so get climbing, the top is a lot closer than you can believe !!

Go for it !

The Rodent