Credit Card V Authorised OD

Dave43_2

Hi,

Would like some advice please.

Currently have a authorised OD with my bank - 1100 od.

Looking to get this paid off within 6 months ( hopefully )

Which is the best way, can I get a 0% interest credit card and clear my OD in this way and then I just pay the credit card without having any interest charged.

Can you get credit cards which can pay an OD?

Thanks in advance

Dave

tomterm8

Last time I looked the technique was to go for a virgin credit card, since it offers 0% APR on a cheque transaction / money transfer (I think there was a 3% fee), which lasts for 16 months.

Dave43_2

Thanks for this information.

Just done a search on the Virgin Card and is say's 16mths at 0% on balance transfers - can I transfer the balance of my OD to the card ( is this how it works ).

Sorry for my ignorance ( never done this before ) as I was under the impression that you could only transfer a balance of a previous Credit Card to another card.

Thank-you

tomterm8

Basically, you use a cheque transaction to pay a friend or family member the £1,100. This costs you £32.78 (which is 2.98%). They put the money into your account, and you have 16 months interest free to repay the money. It is vital to keep the terms of the agreement, and not use the card until you have repaid the balance, because doing either will cost you a small fortune.

If you actually use the card for anything, it is very high interest. So, basically, once you have repaid the debt don't use it again unless you pay it off in full at the end of the month.

ScRiMpNsAvE_2

I'd done this previously with Virgin and it worked fine. MBNA (who run the card) are one of the few providers that allow balance transfers to current accounts.

This can either be done via the cheques they provide or even via their online banking, which I have to say is pretty good.

I'll have to reiterate Tomterm8's words of warning - being new to balance transfers myself at the time and somewhat naive (I hadn't found this site back then) I used the card for purchases too, thinking I'd be paying it off in the order I put it on there. Not the case - you will pay off the lowest rate (i.e 0%) first. Therefore you'll have to pay off the entire balance transfer before you can even start to pay of the debt that's accruing interest.

As it was quite a large balance transfer I was paying interest off for nearly all the promotional period. While it wasn't as much as if I hadn't transferred, it was still a fair bit. My advice to anyone that is doing a 0% BT is once you've transferred to it, set up internet banking, then stick it in a drawer at home and if possible forget where you've left it.

Be careful not to eat in to your overdraft again either - I did and ended up in a right mess, 2 steps backwards. I wish I'd removed it after the transfer. I'm sure you've more discipline than I did but thought it was worth a mention!

Good luck, let us know how you get on.

Innocent_Guy

Yes as above - Also search for Super Balance transfer cards

Dave43_2

Hi,

Thanks to you all for all this sound advice.

So glad I discovered this site - really is a great help.

Thanks

Dave

thriftymomma

Aye, super balance transfer is the way to go!