Way Forward???

Vikingfan

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I am overdrawn regularly by around £1800 and when I get paid I am either still overdrawn by a couple of hundred or If I'm lucky I break even so by the end of the month when all bills and living expenses are paid I am back to
-£1800.
My only credit card I have is paid off in full every month (usually around £400)
I am thinking of stopping the credit card being paid off in full and try to transfer the debts from my bank to credit card to get my bank balance back to a healthy point and then transferring my debt off my card to a 0% for 12 months card such as Halifax, but I probably wont be able to pay off the maximum per month to clear my debts (£200 a month) so if debts not paid off can I trasnsfer the remaining debt to a new card with a similae 0% offer?
Does this sound the way to deal with my problem? Also do any of these cards carry a Bt fee as most of them say 2 % or 2.5% but I Have read on here that they don't if not why does their literature say thgey do?
All help and advice welcome
Thanks

magentadreamer

It would be best if you posted a SOA -thats a list of all your incomings and outgoings -that way you'll get loads of help on how to set a budget and stick to it plus there might be ways to cut back to help pay off your OD.

As for transferring it to a credit card -some cards do charge a handling fee - alot have a capped BT fee others are uncapped so the amount they charge is an exact 2 or 3 % of what you transfer over. There are a few who do not charge transfer fees at all. If you were after a card to pay off your OD you would need a card that allows money to go straight into your bank account.

I would be weary about just shifting your debt to a credit card til you've sorted out a budget and can make the cut backs needed to pay off the credit card other wise you'll end up with a credit card debt plus an overdraft.

CLAPTON

the really important thing is to address the issue of reducing the debt ....as magentadreamer says, post a SoA here and people will help with suggestions for reducing your budget and hence reduce the debt completely.

Playing with 0% credit cards will of course help to reduce the interest charged but at the end of the interest free period you are still left with a high interest debt. Also you need to read the T&Cs of the card very carefully as they usually have lots of restrictions, but in princple the idea is sound. The great danger with these cards is they give you a false sense of security as you pay no interest: it is then very tempting to run up further debt. What interest rate are you paying on your overdraft?