Reducing Overdraft to 0.

CalShez

Hello,

I currently have an overdraft balance of £700, I get charged £1 a day for anything over £300.

Is it possible for me to transfer this balance to a 0% credit card, and then repay the credit card...to save paying £30 a month.

Thanks,
Callum

Tixy

You could if you could get a 0% credit card that allows super balance transfers (thats where you put the money into your current account instead of paying off a card elsewhere). The cost of these is usually around 4% for the one off transfer fee - so if you transfer £700 it would be around the same as 1 month's charges.

Cards that allow SBTs to your current account are listed here - http://www.stoozing.com/sbt.php

CalShez

Ok, thankyou.

Would it be more beneficial...as I get paid monthly around £1000...to just get a 0% credit card, and put all my purchases on that?

So essentially, my wages will cover my overdraft, and then spending can be put onto the credit card?

Thanks,
Callum

Tixy

Yes thats also an option if you go for a 0% purchases card. At a guess some of your day to day spending maybe won't be able to go on the credit card but it would still likely to work out cheaper.

(althought it all depends on you being accepted for a 0% card of course)

KingElvis

You've got to get one first and seeing as you bottom your overdraft, the most likely place which is your bank will be loath to give you a decent card.

CalShez

I've been in my overdraft for 4 months.

Previously I have always stayed in the green (4 years straight) and have always paid all finance off on time etc.

This is the first time I've been in the red for a while now, so would they not accept me for a card?

Thanks,
Callum

paulmcerlean

Ask them and see.

Tixy

If you've seemingly had a recent dip in your finances then it could make them less likely to accept you for a 0% card.
Only way to know really is to apply.

Do some research first before you apply for new card - some have minimum income requirements etc so make sure you applying for a product you'd actually qualify for (it sounds obvious I know but....)