Credit card to get rid of overdraft

stripeycat5

Hi I have a £350 overdraft with Santander - when I first started using them (they were then Alliance and Leicester) it cost me £5 a month for the overdraft now this has gone up to £20! Therefore I need to get rid - would it be a good idea to get a 0% credit card to pay this off and if so what would be the best way to go about this. I earn £16,500 a year and have a mortgage etc just can't really afford to pay the overdraft off bit by bit when they charge me £20 every month!
Many thanks

byjimini

If it's a 0% card and you're confident of paying that off, then go for it, and change bank/cancel the overdraft so you can't use it.

First Direct will pay you to join (so pay that off the CC) and have the first £250 off the overdraft free.

redpete

You need a card that will allow cash transfers to current accounts - aka super balance transfers. There is a list of such cards here although I have not tested to see how up to date.

There will be a fee of maybe 4% - so about £14 for the one-off fee and monthly minimum payments of around £5 which is obviously a good deal compared with £20 a month.

Don't fall into the trap of only paying off the minimum though - try to clear the balance by the end of the interest free period.

(Of course, there's no guarantee that yoiu will be accepted for one of these cards with a relatively low income.)

StuC75

You need to look for one that either :

Allows Transfers to Bank Account - Such as Virgin \ MBNA, M&S Travellers cheques can be paid in apparently (numerous threads on here). Cant recall the other one at the moment.

If not transfer to bank account; then look to stooze the money.. E.g. Look for a card that allows Interest free purchases.. That way put monthly expenditure on this card, paying slightly more than the monthly minimum back - use the rest to offset your overdraft.. Which will allow you to return that back to zero. Then Target the card balance before interest free period ends.. This does require focus otherwise risk having the Overdraft and the equivalent credit card balance..

3 - as per byjimin - look to find a current account with a switching service that may pay you something back on opening (to use against the overdraft).. and maybe a shot at a free overdraft..

Only point to note with first direct and your earnings at 16.5k is that if your not depositing >1,500 per month after 6 months the account has a £10 charge on the 1st Account..