Can i transfer my o/d to a 0% int credit card

miss_money_penny_5

Hi there all, this is my first post, so i hope it's in the right place.
Can i transfer my £2,600 overdraft over to a 0% interest credit card (like a balance transfer) and is it a good idea?
We virtually live in our overdraft but we're paying about £30 each month on charges and interest, so rather than the bank have it, i thought i could pay off some of the overdraft and try to get ourselves straight. Thats the idea anyway!!!!

Zebedee69

Ye i think you can do that although never done it myself.

Are you planning to throw money at the debt then? Thats what I did but I kept the debt in my O/D. If you do start paying it back. GOOD LUCK

Bokken_2

Yes you can do a super balance transfer to your account and shift the OD debt to a 0% credit card.
Only a few credit cards do this type of transfer,A&L,Mint,Virgin,and they all charge a fee for the move.
Have a read up on Martin's articles about BT and SBT's and see what would be right for you.
Oh yeah welcome to MSE

tom188

Only a few credit cards do this type of transfer,A&L,Mint,Virgin,and they all charge a fee for the move.

[Also egg card]
Otherwise you need an egg money card which has this feature

Remember you need a good credit report to get accepted for one of these cards, and not everyone gets accepted.

miss_money_penny_5

Thanks you Zebadee and Bokken.
I'm planning to not keep my overdraft maybe just £500 for emergencies. If my hubby paid himself regularly (he self employed) then i think that might help too, then we would know where we are eh!!!!!!!
Cheers

Bokken_2

Consider keeping your overdraft at a higher rate as it is another indicator that you have good credit.It also allows you to have more flexibility with transfers between accounts and credit cards etc.
Of course there are some fees but if you are only using the overdraft for a few days at a time these fees are acceptable.
good luck.

Philip624

I was thinking of asking the exact same question as miss moneypenny. I have overdrafts with two accounts (one a joint account) both around £960 each plus a credit card balance on a 0% card of £2600 so a total of around £4500.

I have a handle on my finances now so this amount wont increase but will take a while to pay off and I plan to pay it off but would like to transfer it all to one credit card with a life of balance deal. Is that possible? For one card provider to accept a transfer from a credit card plus two overdrafts. What would be the likely minimum monthly payments on such an amount?

YorkshireBoy

Philip624 wrote:

Is that possible? For one card provider to accept a transfer from a credit card plus two overdrafts.

Yes, using Egg Money as a router from M&S. This would put all your debts on 3.9% APR for the life of the balance. Just don't spend on the card - even though it offers 0% on purchases for 12 months as well as the LOB offer.

What would be the likely minimum monthly payments on such an amount?

3% of the outstanding balance each month.

Bokken_2

Yes it can be done. You will need a Super Balance Transfer(See Martin's articles) to transfer the overdrafts to a credit card.
Unfortunately the life of balance cards do not allow a SBT to your account.
You will need two cards a Virgin, or Mint,A&L(which do allow SBT's) and a LOB card American Express etc.
Once both cards are in place you SBT from your cards and your overdraft on to say Mint, once the funds have been transferred and are all on the one card BT the lot onto a LOB card .
Some credit companies have introduced a minimum monthy payment of 3% some cards are at 2%.You should aim to pay more than the minimum amount even if it is on a LOB card.
3% of £1000 = £30.
2% of £1000 = £20 just multiple up depending how many thousands you have on the LOB card.
Hope that helps.

Philip624

Thanks - i think im understanding this. I have an Egg Card already with nothing on it. I took it out via a Cashback site and then added Egg Money Manager to make an easy £24.50 for nowt.

I assume I can follow Yorkshire boy's suggestion but open the M&S card first, SBT the overdrafts plus existing credit card onto Egg and then onto M&S. Is it simply a case of waiting for the money to appear on the Egg card and then transfer it striaght away to M&S, I dont think the Egg card is 0% though so I assume it would generate a little interest for the time it is on there or would it be interest free provided I made the transfer in full by the due payment date of the first statement from Egg - hope that makes sense. Of course I realise there would also be a balance transfer fee.

YorkshireBoy

Philip,

You can do it the way you suggest, but you will incur interest (at circa 16.9% APR typical) on the Egg card from day 1 until the M&S BT hits the account to negate the SBT transaction.

So, rather than incurring interest on the Egg Card, consider creating a +ve balance on it by BT'ing a 'ficticious' debt from Egg to M&S. Once the money hits Egg, just BT it off to your current account (doing the SBT yourself online will avoid any embarrassing questions from Egg CSA's) and settle your debts from there.

Also, there will not be an Egg BT fee if you're not in a 'special promotion' (ie 0% intro offer, anniversary month, or other promotion on your account that you might not be aware of - so check), meaning the entire process is fee-free!!