Any way to convert expensive overdraft to 0% credit card?

Garnett_F

As per the title really. I have 2 credit card balances, a studies loan, a student loan and an overdraft. The overdraft is the 2nd most expensive debt.

I was wondering if there was a way to convert this to a 0% CC balance I could then try to service before the interest free period expires.

Thanks for any help anyone can offer.

MFWannabe

How much is the total debt? You may struggle to get a high enough limit on a new 0% card to pay off everything
If you are wanting to pay off overdraft or a loan then you will need a Super Balance Transfer card that allows you to transfer money into your bank account; i know MNBA allow this but i don't know which other providers do

Garnett_F

Thanks for the quick reply. I want to transfer 2 CC balances totalling £2300 and an OD of almost exactly the same.

From what you say I guess you get the super balance transfer card (SBTC), transfer an amount equal to your OD accross to your bank account, then do a normal balance transfer to the SBTC from a card with a decent 0% period.

Does that sound about right?

(Alos, I want to take out a mortage soon. I'm pretty certain I have a good credit rating but I am paranoid about applying for credit cards just before I apply for the mortgage!)

Tixy

Most SBT cards have as long 0% periods as other 0% cards (12-16months), so no need to transfer again as that will cost you 2 lots of BT fees. But they are not very easy to get these days, in terms of the likelihood of you being accepted - here is a list of the cards that do SBTs - http://www.stoozing.com/sbt.php
Most are part of the MBNA stable of cards but there are a few others.

If you won't be applying for a mortgage for more than a year the searches won't affect it. If you are planning to apply sooner than that and already have a house deposit already saved up you would probably be better off using this to repay your debts and then start saving again at a faster rate (as you would no longer be paying for the debts each month).

MFWannabe

Garnett_F wrote: »

Thanks for the quick reply. I want to transfer 2 CC balances totalling £2300 and an OD of almost exactly the same.

From what you say I guess you get the super balance transfer card (SBTC), transfer an amount equal to your OD accross to your bank account, then do a normal balance transfer to the SBTC from a card with a decent 0% period. - All you do is apply for a 0% card that allows super balance transfers; such as MBNA. When you get approved ring them up (or you can do it online) and say that you need to transfer x amount of money to your bank account; there is a 4% fee for SBTF's. This money you would then use to pay off your overdraft and the debt is therefore transferred to your new card. With approx just over 4.5k owing you should be able to apply for just one card to transfer all these debts to. With the credit cards you say to your new card supplier that you want to do balance transfers to those 2 cards you already have to pay them off (there will be a fee of approx 2.9% for each balance transfer)

Does that sound about right?

(Alos, I want to take out a mortage soon. I'm pretty certain I have a good credit rating but I am paranoid about applying for credit cards just before I apply for the mortgage!)

Hi i've answered your question above. You need to weigh up the difference between transferring against what your current APR's are.
Once you've paid off the 2 cards you already have close them so you won't be tempted to spend on them again and also ask for your overdraft to be reduced
I wouldn't worry too much about applying for a credit card; i believe that mortgage companies will look at your credit history and the amount of debt you have.
Hope this helps:)