Convert overdraft facility to Loan / Credit Card

JazzFM

After purchasing a new car recently, and after finally shifting some funds around from various places, I have a balance of £6000 currently as an overdraft facility linked to my Woolwich Mortgage rate, at I think 5.9%.

I reckon I can pay this off within a year, maybe 18 months if I leave this where it is.

I have looked into 0% credit cards for balance transfers, but they dont seem to be able to take on a money transfer from an Overdraft facility.

I have also considered setting up a 0% credit card for new purchases and spending my daily & monthly expenses on this for the next few months, thus not having to spend any salary or expenses for the next few months until I have paid off the overdraft, then the balance will be on a credit card that I can 'Tart About' if I wish too.

Other alternatives I have considered are low interest loans, but I dont think these will be any better than my current overdraft rate.

I'm open to other suggestions, providing there not too complicated, nor involve too much risk or time to set up and manage.

Thanks for any suggestions in advance.

Rafter

Jazz,

To be honest if your rate is 5.9% you aren't going to make big savings.

Sure, 0% is less than 5.9%, but with 2.5% balance transfer fees every 6 months you won't make much saving.

If you do go this route you need a 'super balance transfer card' such as egg or mbna which allows you to transfer to an overdraft. Similarly sometime Mint issue fee free cheques that allow you to do the same.

Personally, I would see if you can get yourself a long 0% purchases card.

Simply use this card for as many purchases as possible and your overdraft will come down naturally. Pay the minimum balance each month and then do a balance transfer at the end, or pay it off using your overdraft. At least in the interim you will be saving interest.

R.