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Is this a cunning plan??

Hello there

I've recently been realising the benefits of moving balances around different accounts for different gains and so on and am also working hard to improve my credit rating.

I'm moving into a new flat and desperately need £200 cash but am unable to get it from my current account as it's £100 overdraft is at it's limit.

I dont want to withdraw cash from my credit card because of the interest.

I have a new Barclaycard Platinum with 0% Interest on Balance Transfers for 12 months.

My current account overdraft is £100.

Could I use my Barclaycard balance transfer to pay off my maxed out £100 overdraft.....then transfer the now available £100 in my overdraft to a savings account......use the Barclaycard balance transfer to pay off the £100 overdraft again....then again, transfer the now available £100 in my overdraft into mysavings account. I then have £200 in my savings account which I can draw as cash....and £200 on my Barclays Credit Card with no interest for 12 months.

Is there any flaws with this plan??? :confused:
HSBC Loan [STRIKE]£5845.83[/STRIKE] £2500 Barclay Card [STRIKE]£1085.76[/STRIKE] £592.74 Barclays Overdraft [STRIKE]£1100[/STRIKE] £600
Virgin Card £273
Total Debt:[STRIKE] £8228.96[/STRIKE] £3965.74
:T:T:T:T:T

Replies

  • Moggles_2Moggles_2 Forumite
    6.1K Posts
    Could I use my Barclaycard balance transfer to pay off my maxed out £100 overdraft?

    No, Barclaycard does not have this capability.

    A few rather special cards will allow you to transfer an overdraft to them, (in other words, transfer cash from the credit card to your current account), at balance transfer rates. You need:

    a card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin), Egg card or the Post Office card ;)
    People who don't know their rights, don't actually have those rights.
  • Katy_M_2Katy_M_2 Forumite
    209 Posts
    Thanks Moggles....after more investigation I realised I couldn't do that so used my Egg Card as a middle man.

    Result!

    I'm loving all this moving money around, wish I'd taught myself years ago....would have saved a lot of trouble!! Was really worrying about getting that £200 cash and now it seems simple!

    Thanks for your advice though :D:D
    HSBC Loan [STRIKE]£5845.83[/STRIKE] £2500 Barclay Card [STRIKE]£1085.76[/STRIKE] £592.74 Barclays Overdraft [STRIKE]£1100[/STRIKE] £600
    Virgin Card £273
    Total Debt:[STRIKE] £8228.96[/STRIKE] £3965.74
    :T:T:T:T:T

  • splatt30splatt30 Forumite
    337 Posts
    Part of the Furniture 100 Posts Combo Breaker
    Just watch for the balance transfer fees!!!

    I hope transferring from your account to Egg then Egg to Barclaycard hasn't cost you 6% interest.
  • Katy_M_2Katy_M_2 Forumite
    209 Posts
    splatt30 wrote: »
    Just watch for the balance transfer fees!!!

    I hope transferring from your account to Egg then Egg to Barclaycard hasn't cost you 6% interest.

    I won't have got away with a total freebie I'm afraid, will have to pay a small transfer free and yes a bit of interest on the transfer from Egg to Current Account....but it was the only way I could see around the situation. Needed the £200 in current account for last part of deposit for moving into flat and had no other way of getting it and didnt want to draw cash from credit card.

    I welcome any suggestions on ways around this....I havent completed the proceedure yet...have only set up the balance transfer from Barclaycard to Egg which is on 0% interest for next 12 months... :D:D
    HSBC Loan [STRIKE]£5845.83[/STRIKE] £2500 Barclay Card [STRIKE]£1085.76[/STRIKE] £592.74 Barclays Overdraft [STRIKE]£1100[/STRIKE] £600
    Virgin Card £273
    Total Debt:[STRIKE] £8228.96[/STRIKE] £3965.74
    :T:T:T:T:T

  • splatt30splatt30 Forumite
    337 Posts
    Part of the Furniture 100 Posts Combo Breaker
    Are you sure £200 is all you need? Moving into a new place always has added costs. Is it worth making the transfer for a bit more, (even with a BT fee), but if it's interest free on you Egg card for 12 months it might be worth transferring a bit more to put aside for those added costs that always come with a house move.

    I've been a 'card tart' for years. When your using a card for 0% balance transfer the golden rule is to have no balance on that card before the transfer and then to absolutely NOT use it for any purchases. If you do you incur interest at the standard APR for purchases and the card companies put money to the lowest priced loan first.

    Then workout how much you need to put aside each month to clear the card in full when the 0% runs out. If you just transfer the £200 over 12 months that's about £17. Put that money somewhere safe every month and DON'T touch it. Pay the minimum they ask for and just before the 12 months is up pay the remainder off.

    Good luck with your new flat.
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