Paying off my overdraft using a credit card

Goodgegirl

Hello

I have an overdraft of around £900 and £200 on a credit card (at 18% interest!!)

I'm sure I have heard of people paying off their overdraft with a credit card and I would like to do that with a 0% card (which I will cut up and pay off before the 0% ends). I'm just wondering how this works? Do I phone my bank and pay it with the CC or do I do a transfer from the CC?

I don't really use my credit card, now and again I have to put something on it but I always pay it off everymonth, so I have never transfered a balance before.

Thanks!

CLAPTON

only a few CC allow you to transfer a balance to your bank a/c
these are mainly from the MBNA stable of card (e.g. Virgin); you would need one with a balance transfer facility and you would normally pay a 4% fee

alternatively you could get a 0% purchase CC and simply use the card for all your purchases so reducing the OD
in either case you need to be able to pay the debt off before the promotional deal runs out

also you need a good credit record to get the 0% deals ; having an 900 overdrafdt might count against you

I'm also a bit onfused by you saying you don't really use your credit card and pay it off every month but have £200 on it at 18% interest

Goodgegirl

Thanks Clapton

Sorry was a bit confusing about my current cc

I have a cc because I have to expense a lot for work and for the past 3 years I have only used it for that (I have always paid it off every month) but then 2 months ago I had an to pay £170 for an unexpected issue with my car and have not managed to pay it off and some how it has turned into £200.

I think the best thing for me would get a balance transfer card as if it was left up to me just to put the additional spend I would end up with an over draft and cc debt. That way I can just get rid of my overdraft.

ViolaLass

Goodgegirl wrote: »

I had an to pay £170 for an unexpected issue with my car and have not managed to pay it off and some how it has turned into £200.

Do you really not know how? If not, it would suggest you need to learn more about your finances in order to help you control them.

CLAPTON

Goodgegirl wrote: »

Thanks Clapton

Sorry was a bit confusing about my current cc

I have a cc because I have to expense a lot for work and for the past 3 years I have only used it for that (I have always paid it off every month) but then 2 months ago I had an to pay £170 for an unexpected issue with my car and have not managed to pay it off and some how it has turned into £200.

I think the best thing for me would get a balance transfer card as if it was left up to me just to put the additional spend I would end up with an over draft and cc debt. That way I can just get rid of my overdraft.

well, sadly there is no substitute for better budgeting and clearing your debts by reducing your spending.
interest free is good to help but unless you also curtail your spending the debts will simply continue to build up.


try this budget claculator
http://www.makesenseofcards.com/soacalc.html


start to keep a spending diary; that is you write down absolutely everything you spend so you can see exactly where your money goes: then cut out all the junk spending

with christmas coming up it will be difficult but basically stop spending until you clear your debts

once debts are clear you need to build up some saving; partly so you have some fun momney but also emergency money too (a car needing £170 of work is not really an unexpected event... in fact something like that is totally predictable)