Balance Transfer Query

CashStrappedPrincess

Hey all just need a bit of advice really.

I have shifted my Barclaycard debt onto a two new cards that are 0%. One has 11 months and the other has 22 months 0% BT.

I also have an overdraft of £800. This is an arranged overdraft and costs me £1 per day. I very regulary go into it the day after pay day due to standing orders and paying large chunks ofs the CC. So effectively its costing me around £28-£31 per month.

The new credit card with 22 months has a Money Transfer rate of 1.385% Monthly and 16.62% Annual.

Would it be cheaper to use the card to pay off the overdraft as it says in the credit agreements 'Balances will also be reduced according to their interest rates with the highest paid first.'?

I would probably be able to clear the overdraft in 4 months.

Sorry if this isn't very clear

blitzboy

It depends how quickly you pay off the credit card as to how much it will cost you. If you dont clear it by the time the 0% deal runs out then you will end up paying interest or another transfer fee.

Why are you paying 'large chunks' on a 0% credit card while paying fees for an overdraft? Just pay the minimum amount until the deal runs out.

Alternatively, you could apply for the M&S credit card. That is 0% purchases for 15 months and they count the purchase of Sterling Travellers Cheques as a purchase, rather than a cash transaction as most others do. There is a 1% fee for this, but for £800 that would only cost you £8 to have it interest free for 15 months rather than paying interest straight away (as well as a higher transfer fee) on the card you suggest.

smithers1981

Sounds like you should switch current account to one with a cheaper overdraft, ditch and switch as martin says.