balance transfer an overdraft? or stay overdrawn?

chillberts

I am overdrawn to the limit on my overdraft I get chrged every month about £12 intrest. I will not be able to get out of my overdraft realisticly for probably a year. I have a 0% intrest Virgin credit card which is intrest free on balance transfers until Jan 2010 Then I thought I could tart the balance around until it is finally paid off. Any advice would be great.

moneysavingmarrow

If you transfer your overdraft to the virgin card, that will cost you 4% for about 5 months.
What is the monthly %age charge on your overdraft?

chillberts

I think it's 10% per month as I am £1300 overdrawn and get charged between £10 and £13 intrest each month. So it would still be better to transfer it wouldn't it?
Thank you for your reply

Any

chillberts wrote: »

I think it's 10% per month as I am £1300 overdrawn and get charged between £10 and £13 intrest each month. So it would still be better to transfer it wouldn't it?
Thank you for your reply

Sorry, re-read your post again.

after Jan 2010 the rate will revert to much higher rate then your overdraft. And you will have another 8 months before you can repay. I cannot see it being worth it.

moneysavingmarrow

In that case, I think I would and set up a direct debit to pay the minimum amount each month. Then I would open an egg savings account and stash as much dosh in there as I could with the view to using that to pay of the virgin balance at the end of the term in case I could not get another balance transfer deal.
Of course, this assumes that you have no spend balance on the virgin card at present.

Any

Transfer fee £52
Only 4 month - it will take some time before the BT is done and you have to repay it on Jan 2010 statement

4 months worth of interest
best case 4 x £10 = £40
Worst case 4x £13 = £52

Have I missed something?

chillberts

I'm really confused now! lol

Basically If I balance transfer £1300 onto my Virgin Credit card I will have to pay a 2.98% balance transfer fee, I will then have to pay my minimum payment every month with no interest charged until Jan 2010. I would then try and get another 0% balance transfer card and move that. In the case of not being able to get one I would have to get the best, low interest card I could as keeping on the Virgin card would not be a good idea at all. If I keep my overdraft I wont be paying off any every month but I will be being charged £12 for being in my overdraft. With this information does anyone kknow the best plan for me? Pleeez? Thanks

chillberts

thanks moneysaving marrow, I

chillberts

thanks moneysaving marrow, I would set up a direct debit and it seems a good idea to set up a savings account with a view to use that to pay off the balance eventually.

x-cupcake-x

A&L do a matched overdraft to your current current account which is fee free for 1 year. You have to pay (I think) £500 per month into in it to qualify but you could do this and then transfer say £400 back to another account for 1 month until the OD was paid off and then close the A&L account.
This way you wouldn't incur any BT fees or interest.

chillberts

thanks cupccake i'll look into that :-)