Transfering overdraft to credit card ???

Ellis77

I am new to all this, so please be gentle with me.

After many a moon of thinking debt wont ever matter to me, closely follwed by marriage, mortgage and kids and the sudden realisation that it does matter......... some assistance is needed.

The basics are I have an overdraft that I am looking to move away from my evil bank and move to a o% for 'x' months credit card and comit to a payment plan and finally start to be a gropwn up.

However I have concerns that I am about to walk staright into another idiotic financial decision.

I want to firstly make sure that to transfer an overdraft to a card is ok, if that still qualifies for the 0% and to make sure I am not going to get hit with any hidden charges.

Your help is greatly appreciated.

Thanks Stewart

lisyloo

You need to get one of these cards.

http://www.stoozing.com/sbt.php

As you can see there is a fee of about 4% with a lot of them but I would not say it's hidden.

You cannot transfer an overdraft on ANY card, you need one of the ones above.

CLAPTON

how big is the OD?
how long will be take to pay it off (i.e. how much do you allocate to its reduction each month
what is the APR or charging details of the OD
why can't you commit to a grown up 'payplan' on the OD?


In general you can't simply transfer an OD to a credit card; however some will do this, mainly the MBNA stable of cards will allow you to BT from an OD to the card; so if you can get a suitable 0% BT card you will only pay a BT fee (3-4%) if you clear the debt within the 0% period.

CannyJock

Ellis77 wrote: »

However I have concerns that I am about to walk staright into another idiotic financial decision.

Like getting married and having kids?

You can't beat those three little words "Half Of Everything" and "Dad, I Want"

Not possible to say if that's the "best move" - some banks are offering interest free overdrafts for a period of time if you use their switching service (http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237835064821&empr=Abbeycom&leng=en_GB&pagename=Abbeycom/Page/WC_ACOM_TemplateW2) so you'd avoid any fees at all. Depends on how much you owe, how much you can pay each month towards it, and what plans you have in place to prevent you just running up your overdraft again?

Ellis77

Well thanks to those that replied, so it looks as though I was righ to check.

I have a card that has eben sent through from Barclays which was the 14 months 0% that wa hihlighted by MSE recently, but I am not sure if I transfer the OD onto that one ?.

I could start to pay back an amount each month but I was looking to save on the interest charges from my bank, by moving it away and paying the balance off whilst interest free as it would save money.

The overdraft is 3.5k and I can afford to pay probably £150 per month.

YorkshireBoy

Ellis77 wrote: »

I have a card that has eben sent through from Barclays which was the 14 months 0% that wa hihlighted by MSE recently, but I am not sure if I transfer the OD onto that one ?.

You would be if you checked out the link provided in post #2. However, to save you looking you can't do it directly...only via an Egg Money card.

I could start to pay back an amount each month but I was looking to save on the interest charges from my bank, by moving it away and paying the balance off whilst interest free as it would save money.

I think CLAPTON's point was if you can suddenly find £150 per month now...why weren't you finding it before (and, albeit slowly reducing the overdraft)?

The overdraft is 3.5k and I can afford to pay probably £150 per month.

Most people overstate what they can afford to repay. However, just so you'll know...you'll be committed to £105 per month (at 3% on £3,500).

Good luck.

Ellis77

The extra money is now available as my mortgage reduced down as went onto the variable rate and had a pay rise at work.

In your opinion should I just stick with the bank and commit to the same repyment plan ?.

CannyJock

How much was the overdraft costing each month? Is it a fixed cost or an APR on the balance?

Ellis77

I now for instance this month they charged me £38.80 overdraft interest, to be honest I am not sure if that is either a fixed cost or an APR on the balance.

I am guessing the best thing to do is just start to pay it off direct with the bank each month.