Unsure what to do: Overdraft / CC

angstyovermoney

I've picked up a bit of debt on my credit card through booking a couple of holidays, it's around £600 of a £4k limit. £600 is a bit less then half of my take home pay.

I'm also dipping in to my overdraft every month at the moment having paid off a 700 CC bill (bed + some furniture) just before Christmas but steadily dragging myself out of that month by month but if my budgeting works out I reckon I'll end up about £250 into my overdraft which is interest free up to £500 (graduate account). Overdraft limit is £1,500.

I think I'm managing my debt generally (although I do realise it's a dumb-!!! idea to get £600 into debt for holidays but I really neglected my hometown friendships whilst away at uni, and in some way trying to restore them) but just wanted to know?

A: On a HSBC credit card 17.8% APR what can I expect the interest to be month to month? I know this is hard to work out but any guesstimate? I have a good credit rating if that helps.
B: This is probably a stupid question but is it better to totally blow my overdraft and pay off the credit card with my current account?
C: I have a Virgin credit card which I signed up for, for its 0% rate (now expired) but never used, should I cancel it?

I'm not keen of applying round for a 0% card but I guess that would be the most sensible solution! If I'm honest I would rather keep the debt on the credit card as it will make budgeting a bit clearer, so if the interest is a small amount then I think I'm willing to pay that.

onlypaddy

A. Interest is calculated daily on the end of day balance....17.8% APR is around 0.05% per day. These daily interest charges are then added to give the interest charged on your monthly statement

B. This could work as you are then saving interest....but remember overdrafts are repayable on demand. However this shouldn't happen if you are regularly funding the account and not exceeding OD limits or bouncing DD/SO payments

C. Yes...access to a lot of credit impacts your credit file. If you never plan on using it then get rid.

TBH, yes applying for a 0% balance transfer card would be preferable to using the overdraft. If you have a good credit history (not sure with having access to unused Virgin CC) then you should be ok as long as you pick the right card....see the main site guide on this: http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

But at the end of the day if you want to avoid credit searches then its up to you