OH's Overdraft dangerously close to the limit

londoner1998

Hello

after the non-money saving holiday (on another thread), my OH finally surrendered and we had a look at his accounts today- his arranged overdraft with NatWest is dangerously close to the limit (less than £100) and he finally agreed something need to be done.
He mentioned getting a 0% credit card so that he avoids the whooping interest he is accruing... I thought about this, but while I know this is something you can do with Credit Card debts (0% balance transfers), is it possible to do it with an overdraft? He says it might be better to use the CC for daily purchases at 0% and then keep plugging the hole in NatWest with incoming freelance money etc...

Has anybody done this and is it helpful?

He is not particularly disciplined but I think this is about to change...

Thanks,

Ax

londoner1998

Sorry, I have moved this to the credit card forum... a much better home for it- my mistake

chexum

If he has a good credit rating, there are two options with a new card:
- some allow money transfer, super balance transfers (somewhat higer, 3-4% upfront cost) to pay to any current account, and then keep it at 0% for 6-12 or more months
- with a 0% purchase card, you can move some bills, but all groceries/petrol to it, so slowly get the overdraft back in black

In both cases, you'll have the same amount of debt, at possibly the same or higher level of interest, and you'll still need to sort out the monthly minimum payments. After the 0% expires, the minimum payment will achieve practically nothing, but keep the debt from growing too quickly

Check with the debt-free-wannabee boards on this forum as well, the debt won't disappear just because of the shuffling.