Help to get rid of overdraft please

jaggylou

Whats the best way to pay off £8000 overdraft? Get a loan or pay with credit card and then transfer to 0% deal (is that even possible)? Banks nagging me to get loan

zerog

What is the interest rate on the overdraft and what rate is the bank offering you a loan at?

jaggylou

Interest rate on overdraft is 15.43%. Cant remember exact rate loan was offered at but was much lower than overdraft rate. My income's erratic so trying to get as low monthly payback as possible which is why i was wondering if its possible to pay debt with credit card and then switch to 0% deal?

YorkshireBoy

Using an MBNA card via their 'money transfer' feature*, and then switching to other 0% card deals, will be the cheapest method.

Whether it'll work for you is quite another matter, since no-one here can say whether a) you'll get a circa £9K limit, nor b) whether you'll be able to get further 0% deals. If you can't get other 0% deals, and can't get a loan either due to the MBNA debt, your credit card 'loan' will finish up at circa 17% APR.


* 0% for 20 months, with a 4% fee

opinions4u

What are you going to do to address the overspending that created the overdraft?

jaggylou

Sadly it wasn't overspending - at least that may have been fun! Overdraft came about by income going down and bills going up Now we both have jobs hopefully we won't recreate overdraft once it's cleared.