Overdraft vs credit card

cags21

I am trying to get rid of an overdraft I have had for years from an old student account, currently standing at 1,650D approximately. I pay it off with a minimal monthly amount and keep dipping into it, but am looking to become more disciplined and pay it off quicker. I have just had notification that the interest rate for this is now going to be 19.9% APR (I think). I have a credit card with 0% for the first 6 months-would I be better using the credit card to pay off the overdraft and paying that off during this period? Anyone any sugggestions?

DarkConvict

Touch choice, the balance transfer will have a fee attached. I.e. 3%.

So £1,650 for 6 months at 20% = ~£200
So £1,650 + (3% fee) = £49.50

Furthermore only 1 or 2 cards allow you to transfer from an overdraft to a credit card --> http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

Also remember if you have not paid it off within 6 months you then have alot of money on a credit card which rate could increase, what is the typical rate of the card already, although then again overdrafts can be cancelled given 30 days notice.

reall

Tough choice
I would suggest if it is possible to do more than two things. I would open another bank /building society account eg.co operative,nationwide or another account so that wages/benefits can be paid into and usual expenditure will come out of this new account.You could wipe out the debt by a certain time that you have decided,depends on what you can afford and do this by standing order .The reason for this action is that you will not need to have reason to go back into the overdraft because you will not be accessing this account for anything i.e just to pay the debt back.secondly the bank can stop access to this overdraft facility as they choose fit and sometimes without warning as it is their money. thirdly it will help you to evaluate your expenditure and assess your current incoming and how you spend your money.
The credit card dilemma is that the interest would be much higher and transfers are usually from one credit card to another.two you could be tempted to use the cards for other things also.I think its best to stick with cash transactions and keep the card for unexpected expenses that you can not afford to pay for in one payment eg.washing machine breaks down and no savings to replace.