Paying off overdrafts

JollyNolly

I know that you're not supposed to stooze if you've got debts, which I have. However, is there anything wrong with using SBT cards to temporarily pay off an overdraft to avoid the interest charges?

YorkshireBoy

JollyNolly wrote:

I know that you're not supposed to stooze if you've got debts, which I have. However, is there anything wrong with using SBT cards to temporarily pay off an overdraft to avoid the interest charges?

No, but...

1. Be aware that there may be a fee for the SBT, unless you use Egg Money and a 'donor' 0% BT card.
2. Ensure it is a 'means to an end', ie you've addressed the reasons for the overdraft.
3. Bear in mind that the minimum monthly repayments will be 2-3% of the balance.

JollyNolly

Good. It's a sort of "poor man's stooze", I suppose ;-)

YorkshireBoy

JollyNolly wrote:

Good. It's a sort of "poor man's stooze", I suppose ;-)

Look at it as 'saving money' with credit cards, rather than 'making money' from credit cards.

I should have added...

4. Either plan to clear the card within 6/9 months, or have a plan B up your sleeve - ie switch to another 0%, or LOB, card.

Fundamentally though, number 2. is the key.

Good luck.

JollyNolly

Hmm. Done plenty of soul-searching about 2. Basically it's been down to a chronic unwillingness to face financial reality. However, I'm now a man with a mission - to clear my debts before I retire!!!

HGLTsuperstar

Alternative move to a bank account with the 12month 0% OD, i.e. A&L, Barclays, and use that time to straighten your finances