Credit card v loan to clear overdraft

hoganone

Need a bit of advice please I have approx 700 overdraft with barclays and 1500 with halifax - how can I best clear this? As I am paying more interest than I actually use the card for!!!

I have never had a credit card in my life and am a bit scared of them to be honest, would this be a better option than a loan do you think?

Thanks

tom188

It can be. But if you are struggling to clear your debts I suggest you visit the debt free wannabe board, read the stickies and post your statement of affairs and the many people in much worse positions than yourself will advise you where to cut down.

EvilEdna_2

I wouldn't use a credit card to clear an overdraft, personally. Unless you transferred the balance on to your card (which I'm not sure if they'll do) the only other way would be to take out a cash advance which would have a fee attached and is normally at a much higher rate of interest than purchases.

tom188

MBNA and Egg do allow "super bts" to current account.

Moonbeam

which current account do you have with Halifax? If you credit your account with more than £1000 per month you can redesignate your account to their Moneyback one - that has a lower interest rate - 6.9% as opposed to 15.9% on their type A current account. You would also start earning cashback on debit card purchases....You could then ask if you can increase this overdraft to pay off your barclays one....

girltuesday_2

I balance transferred my overdraft to a 0% credit card (Egg) because I knew that otherwise it would never get paid off - I'm always at the limit by the end of the month. This way I should have it cleared in 18 months or so.