Credit Card to pay overdraft??

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

pinkarsenalprincess

I have just done this with MBNA (you can also do it on virgin card - same company). I have 0% for 12 months on my balance transfer which went into my bank account to clear £4000 of overdrafts. The fee advertised was 4% but I was only charged 1.9%. Even with a 4% charge this was far less than the interest paid each month (£150+ on £2k in HSBC O/D).

I have found it a useful way to start my debt free future. I find it less stressful and easier to now work in 'the black' when budgeting and have set aside large amounts each month to throw at the credit card. Your OH needs to be sure that his habits are going to change completely and that he will clear the CC and not add to his debt by going back into the O/D as well. He also needs to be sure that he will be able to clear it within the interest free period to avoid high interest rates.

bottleofred

Hi Londoner,

If you do get a 0% card and can transfer the balance, the key is to make sure you can clear the balance prior to interest being charged.

Good luck

londoner1998

Thank you!

we are at the stage no that is checking what comes out of that account and has moved a phone bill to the account where he gets paid, to avoid 'accidents'- We have also realised he is being charged a £12.95 'service charge' that gives him nothing at all! He is going to spekt o the bank to get his account downgraded to the Current PLus- I did this years ago wih no problem, but I am not sure whether he will be able to keep the overdraft facility- I think it shouldn't be a problem?

The credit card remains an option, but it woudl be great if he sorts out his habits first!

Thanks all
A.

Tixy

This http://www.stoozing.com/sbt.php
is a full list of the cards that allow you to do a super balance transfer to pay off his overdraft.

Depending on how long he thinks it will take him to pay it off some have longer 0% periods but slightly higher transfer fees.

MiaowMiaow

Tixy - thanks for the link........................

my overdraft is costing a fortune. Just joined this site and getting my finances in order, it has been going on too long with too many sleepness nights and headaches........a fresh start :-)

Sharon87

I am currently using a credit card to pay off my overdraft. I am using the credit card for every day spending and using wages to pay off overdraft.

It's not going really well after my expensive month, I have reached my credit card limit almost and after pay day tomorrow my overdraft balance will be £700 overdrawn out of £1500 limit, my credit card limit is £1400. It takes discipline and organising. It will reduce what I'm paying, but I've got more debt. Then again I did spend £500 on new laptop, microwave and had a holiday to pay for lol.

I got Halifax's credit card the one you can only get when you have a Reward account with them, and it's 0% on purchases for 12 months