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Hi there,

So I need to sort out my finances.

I currently have am overdrawn in my graduate account by about £800 but also have a Halifax credit card with my travelling costs on mounting to about £1700 on a high interest.

Is it best to take a loan for the lump sum and pay off minimum each month or is it best to switch all to a 0% interest credit card and if so which? It will take me a while to pay all back.

The information on the site looks good but I just don't have ages to try and work it out so any pointers would be great! Thanks


  • [Deleted User]
    What's your income?
    What rate on your paying on your card?
    What's the limit of the card?
    Any other debts or available credit?
  • Tixy
    Tixy Posts: 31,455 Forumite
    Aside from the debt repayments - are you spending less a month that you earn (are the debts reducing each month overall)?
    How much can you afford to repay to the debts in total a month?

    Are you being charged interest / charges on the overdraft?
    What APR are you paying on the card?
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  • grumbler
    grumbler Posts: 58,629 Forumite
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    0% card is the best, but not all can be used to transfer the overdraft to (http://www.stoozing.com/sbt.php). And in a year or two you'll face the same problem again if you don't use this opportunity to repay the debt. So, a long-term low rate card can be better.

    And a loan is likely to be better than both the overdraft and the 'high interest' CC.

    The only problem is that you have to have a good credit history and a decent income to get a 0% card. The same applies to a loan with low interest rate.

    Re the 'pointers', it doesn't take much time to find them in MSE articles:
    Alternative is a card with 0% on purchases that gives you an opportunity to use the 'saved' money for reducing the CC and overdraft balances: Spending 0% Cards

    See also:
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