Paying off overdraft

kshops73

Please advise. What should I look for in a credit card to be used to pay off an overdraft?

CLAPTON

depends on your circumstances

what debts do you have .. amounts, aprs, fees etc
how much do you earn
what do your credit files say

dalesrider

You can't do a balance transfer to pay a overdraft off.

fredtheguava

dalesrider wrote: »

You can't do a balance transfer to pay a overdraft off.

You can use a money transfer though, sometimes called a super balance transfer. I've done it, my OD is now on 0% over 15 months instead of costing me £20 each month it was in use. It's made a MASSIVE difference to me, I think I'm actually going to clear it whereas before I never could quite get my head around doing so.

Oh - this is on a Virgin card.

dalesrider

Ah. But what % did they charge. As in effect they are doing a cash transfer?

Any

dalesrider wrote: »

Ah. But what % did they charge. As in effect they are doing a cash transfer?

No, MBNA group cards take Money transfer as Balance transfer. The BT fee is 1% higher, but you still get 0% period.
Go on mbna.co.uk and see for yourself.

kshops73

You get 0% for 20mths, but you have to pay 4% transfer fee. I suppose still cheaper than paying interest monthly though?

fredtheguava

kshops73 wrote: »

You get 0% for 20mths, but you have to pay 4% transfer fee. I suppose still cheaper than paying interest monthly though?

Yep. It cost me around £70 is transfer fees but as my overdraft is £1 per day (max 20 per month) it has paid for itself in 3 1/2 months, and it would have taken me a lot longer than that to pay it off in my current situation.

More than that though, for me, was the peace of mind knowing that I could make regular payments towards it and be able to budget accordingly to clear it in time. With it being an overdraft, I could not wrap my head around 'just going £100 less into it each month' which was the only advice I got!

Sheriffsam

wuld it not be more cost effective to get a 0% on purchases card and use this instead of your bank account for a couple of months in a similar way to stoozing? Doing this would reduce your overdraft over a couple of months instead of instantly, but could work out more cost effective. You can then make minium payments each month, or more if you can afford it and then balance transfer this when you get to the end of the 0% period.

Has anyone else done this? I would if i could get a bloomin' credit card!