How to pay off £5000

Debttrouble

Hello.
I currently have £4000 on a credit card and £1000 on an overdraft, and i am aiming to consolidate this or at least cut out interest on the credit card.
I am looking to pay all this off in 36months in the cheapest way possible.
Can i ask what the best method would be to pay this off? Would it be a loan for £5000 OR a balance transfer of £4000 with 0% interest. However the second option leaves my overdraft untouched. Is there anyway this can be paid off with the credit card?
Also with these BT O% for 20+ months, does this mean that as long as you make minimum payments and do not spend on the card that no interest is charged??
I would appreciate any help that can help rid me of this £5000 debt. Many thanks!!!!!

maginot

The credit card would probably be the cheapest method as long as you can afford to pay back the full amount before the deal finishes.
You could do a super balance transfer for your overdraft debt (tends to be an extra 1% on total balance), this money would go to your current account.

Senior1983

U could transfer the 1000 overdraft to your card online. This will be treated as a cash transfer and will cost. Then apply for a new card and transfer the 5000 over and pay 170 amonth for next two years and do another transfer in 2 years for the final bit.

bengalknights

The best bet would be a long intererest free balance transfer card which you could transfer the debt due.

Debttrouble

Many thanks for your quick reply. How do i go about getting a 'super balance transfer'?

Poosmate

I think the first thing you need to look at is your spending and to reduce that. When was the last time you used your credit card? Do you always go £15 into your overdraft?

If the answer to either of these questions is yes then you are not living within your means.

Regarding a loan for consolidation purposes, you most likely won't get a very good rate of interest and if you haven't stopped and thought about how you spend your money (your outgoings) then you will soon be well into your overdraft again and back to square one. Believe me, most of us on here have done the consolidation thing with all the best intentions - it rarely works.

Poo

maginot

Debttrouble wrote: »

Many thanks for your quick reply. How do i go about getting a 'super balance transfer'?

Exactly the same way as a balance transfer. Just apply for the credit card that does a deal and give them your account details.

However, other posters make a good point, you need to ensure you pay more than the minimum payments to ensure the debt is paid. As well as not using your credit cards or overdraft again, otherwise you will find yourself in a lot worse situation.

Tixy

Debttrouble wrote: »

Many thanks for your quick reply. How do i go about getting a 'super balance transfer'?

You'd need to go for one of the few cards that allow super balance transfers (also known as money transfers). Essentially these are cards backed by MBNA, such as Virgin, and also Post Office cards.
M&S and Tesco cards also have a way to pay off overdrafts, by purchasing sterling travellers cheques.

Obviously thats dependant on getting a new 0% credit card (that allows super balance transfers) with a limit in excess of £6k. And how likely that will be will depend on many factors including how much you earn, how much your existing debts are, what your credit history and credit file is like etc

blogs

You could do a super balance transfer for your overdraft debt (tends to be an extra 1% on total balance), this money would go to your current account.

malcolmffc

To clear your overdraft, get a card with 0% on purchases, and do your spending on that, paying just the minimum payments. Your income should then build up in your bank account, paying off the overdraft. Once it's gone, focus on paying off the credit card.

For the other £4000, get a balance transfer CC.

boppy

HI
not sure if on right thread here ... however I have been told by a work colleague if you have a debt of for eg 3K on cc you can offer to pay the cc company a much lesser amount in full and final settlementand will not affect your credit rating ...to me this seems very unfair if you have run up the debts you should pay them off.Has any one else heard of this so as i can put my colleague straight !!!
thanks