Best way to manage overdraft

chriss1979

Hi everyone, Ive been creeping around these forums for a while taking in all the advice myself and thought Id ask for some advice regarding the best way to manage/pay off an overdraft on behalf of my girlfriend.

She has an £1100 HSBC overdraft (currently at 0% interest) which next month they are changing to a regular account with I think it is a 15.9% apr.
What would be the best way to manage this to pay as little interest as possible?

I have though about transferring this to a 0% balance transfer credit card and would like to know from anybody with experience of doing it this way how simple it is to arrange? Also are you able to transfer from a bank account to the Halifax One card as this has 0% on balance transfers for 12 months and would be ideal as she will only be able to afford to pay off £50-100 per month.

Thanks for any help and advice, its much appreciated!

Eoin_McLove

I have the same problem at the moment. I have a £2,000 overdraft which I need to get down to £1,000 within the next few weeks, because I have a graduate account with Natwest, and a year after you graduate, your overdraft is reduced from £2,000 to £1,000. Fortunately I can use Natwest's Graduate Overdraft Repayment Plan, and borrow the £1,000 interest-free over a maximum of three years. If your girlfriend is a recent graduate, you might be able to get a similar arrangement.

Otherwise the best bet is to do a balance transfer to a 0% credit card. Capital One Platinum seems to be one of the best at the moment: 0% on balance transfers until September 2007. There is a 2% balance transfer fee, so that works out at £22 on your £1,100. The minimum repayments are 3%, but if your girlfriend can afford £50-100, then you should be able to have this paid off before the introductory 0% period ends.

chriss1979

This would be ideal with it being 0% until September 2007!

It doesnt look like you can balance transfer from a bank account though or am I missing that??

mintymoneysaver

You would need to look at the super balance transfer article to find a credit card that will let you pay off an overdraft.

chriss1979

Thanks minty! :j

Think the Abbey balance transfer credit card looks the best bet, 0% for 9 months and theres a branch up town so we can see them face to face if we have any issues.