Overdraft! What to do?

peppa<3

Hi,

I have a £2,500 overdraft which I'm currently paying £40 for a month.

I'm keen to transfer it elsewhere so that my salary is not eaten by it, and pay it off in installments.

I have looked around and seen 'super credit cards' where you can pay money into your bank account, which pays off the overdraft, then you pay back the credit card [Virgin].

Does anyone know how it actually works? Not much info on Virgin site and I've never had a credit card / loan etc.

Thanks!

Cash_Flow

peppa<3 wrote: »

Hi,

I have a £2,500 overdraft which I'm currently paying £40 for a month.

I'm keen to transfer it elsewhere so that my salary is not eaten by it, and pay it off in installments.

I have looked around and seen 'super credit cards' where you can pay money into your bank account, which pays off the overdraft, then you pay back the credit card [Virgin].

Does anyone know how it actually works? Not much info on Virgin site and I've never had a credit card / loan etc.

Thanks!

It works in the way you described in your post.

If you are maxing out your O/D every month you may struggle to obtain a Virgin credit card IMHO.

peppa<3

Cash_Flow wrote: »

It works in the way you described in your post.

If you are maxing out your O/D every month you may struggle to obtain a Virgin credit card IMHO.

Ahh. Thanks. Damn - even though if I left my salary in there I'd only have £1000 overdraft? Obviously this never happens but wishful thinking they may look at it like this.

Perhaps I do need to stick with the loan option. I can do this with Halifax but I pay £370 over 12 months in interest - still cheaper than the £40 overdraft though.

Thanks for your advice / help.

Attackthebanks

I did a super balance transfer using the Virgin CC, worked a treat, BUT keep in mind that they take 4% for money transfers, so that would be £100 on a £2500 transfer.
This is added to your transfer, so if you were accepted and got at least say a £3000 credit limit, then your initial balance would be £2600, but that's £2600 at 0% for 20 months!

Can work out very well if you stick to it.
Two things......

1 = Set up a direct debit for the min payment at least, £2600 over 20 months is £130 per month, you may wish to pay more!

2 = MOST IMPORTANT!!.... Remove or reduce your overdraft, so you don't end up into it again AND have the CC debt!

Works for some people but you gotta STICK to the payments!
Also keep in mind if your paying £40 per month to your over draft over 20 months that's £800, doing a super balance transfer you take the initial hit of 4% (£100 FEE) but it's saving you £700 in the long term!!

Very straight forward process to and let's you set up the money transfer at the application process!

Good luck.

peppa<3

Attackthebanks wrote: »

I did a super balance transfer using the Virgin CC, worked a treat, BUT keep in mind that they take 4% for money transfers, so that would be £100 on a £2500 transfer.
This is added to your transfer, so if you were accepted and got at least say a £3000 credit limit, then your initial balance would be £2600, but that's £2600 at 0% for 20 months!

Can work out very well if you stick to it.
Two things......

1 = Set up a direct debit for the min payment at least, £2600 over 20 months is £130 per month, you may wish to pay more!

2 = MOST IMPORTANT!!.... Remove or reduce your overdraft, so you don't end up into it again AND have the CC debt!

Works for some people but you gotta STICK to the payments!
Also keep in mind if your paying £40 per month to your over draft over 20 months that's £800, doing a super balance transfer you take the initial hit of 4% (£100 FEE) but it's saving you £700 in the long term!!

Very straight forward process to and let's you set up the money transfer at the application process!

Good luck.

Thanks for your reply!

How do you go about doing the cash transfer once you receive the CC? Do you just call them or? I'm glad that it sounds quite easy to transfer the money to them! And I definitely intend to close the overdraft as soon as the money hits it!

peppa<3

Can I confirm - this is the right card I should be applying for isn't it?

Won't let me post link but Virgin Balance Transfer CC?

omas

http://uk.virginmoney.com/virgin/credit-cards-v3/

peppa<3

I got told no as soon as I applied

Have no idea what they have based that on?!

Surely they have to go away and look into it.

peppa<3

Because of my credit report. Will my overdraft be on that? :-(

Apart from that I have never had any bad credit... but I probably have a low score for that reason, never had anything in my name.

redpete

could be the size of your overdraft, could be lack of credit history, could be low income, could be your not on the electoral role, could be short address history, could be a mixture of these things.

peppa<3

Thanks. Loan it is then! Halifax say they payout instantly, so shouldn't fall into any problems (I hope).