C/C transfer and overdraft combo

spendy_spendy

Hello,

I have a few hundred on a c/card @ 16.9% and an overdraft that doesnt get cleared even on pay day so im constantly in the red.

My thought is to pay off the overdraft using the avaliable funds on my c/card then transfer the balance to a 0% c/card such as Virgin with a 16 month interest free transfer rate.

I could then clear the debt within a year without any real problems and avoid any overdraft or card charges.

Can anyone see any potential problems with this that I havent seen or know of a better way to get back in the black?

Thanks in advance.

Shelldean

think the payment from the card to the overdraft will incur charges as it's treated like a cash withdrawal. Also what the real chance of you getting a 0% credit card??? we thought we'd be fine and was all set to transfer a couple of cards but failed to get the 0% card.

am sure someone with much more knowledge will be along soon

IWantToBeFree_2

It isn't treated like a cash withdrawal, you can do money transfers from MBNA cards which attract the same promotions as balance transfers, however they attract a slightly high transfer fee of 4% rather than 2.98%-3%.

EDIT - I thought that the OP was going to use Virgin money for both but just looked back over his post. Your best bet is to go for the Virgin card, but don't use your current one to pay off your overdraft, use the Virgin Money to pay them both off (subject to being approved).

Shelldean

sorry I thought if you did a transfer from a crdit card to a bank account it was treated as cash.... learn something new every day

spendy_spendy

Thanks Iwantobefree, I wasnt too sure about how the overdraft payment would be classed ie cash withdraw or monay transfer after shelldean brought that up,

Ill do the maths now and work out the charge once ive spoken to the card company and see if i can get approved for a virgin money card.

Thanks for your advice too though shelldean!