Overdraft to Card?

blackburn_w

Hi all,
I have just recived a letter from the back to say that i have til the 5th of April to pay my overdraft as they are withdrawing it.

The story behind it is a few years ago i got into trouble and had £1500 over draft which was maxed out! so i decided to open a new account and start paying it off.

I Lost my job last year but managed to get it down to 766, and drop my overdraft to £800.

the question is i have a credit card and they have offered me a balance transference at 1.5% and interest free til Jan 2014.
I do not currently have anything on this.

is this a wise move or silly, I can not afford to pay any more than around 50-60 a month. and the bank have said they would need 210 to keep my overdraft open.

sorry if i have rambled on...

Thrifty_Pixie

blackburn_w wrote: »

Hi all,
I have just recived a letter from the back to say that i have til the 5th of April to pay my overdraft as they are withdrawing it.

The story behind it is a few years ago i got into trouble and had £1500 over draft which was maxed out! so i decided to open a new account and start paying it off.

I Lost my job last year but managed to get it down to 766, and drop my overdraft to £800.

the question is i have a credit card and they have offered me a balance transference at 1.5% and interest free til Jan 2014.
I do not currently have anything on this.

is this a wise move or silly, I can not afford to pay any more than around 50-60 a month. and the bank have said they would need 210 to keep my overdraft open.

sorry if i have rambled on...

i think this answers your question if you don't want to default, as you won't have paid off the o/d in time.

personally i would take the hit on the balance transfer fee (which i think would only cost you £11.49 anyway?), transfer the o/d and then set up a regular amount to my c/c to get it cleared before Jan 2014.

oh...and don't use the c/c for anything else!

poledancer49

You have done well to get the OD down already...what a shame they are withdrawing it for you.

The_Boss

blackburn_w wrote: »

Hi all,
I have just recived a letter from the back to say that i have til the 5th of April to pay my overdraft as they are withdrawing it.

The story behind it is a few years ago i got into trouble and had £1500 over draft which was maxed out! so i decided to open a new account and start paying it off.

I Lost my job last year but managed to get it down to 766, and drop my overdraft to £800.

the question is i have a credit card and they have offered me a balance transference at 1.5% and interest free til Jan 2014.
I do not currently have anything on this.

is this a wise move or silly, I can not afford to pay any more than around 50-60 a month. and the bank have said they would need 210 to keep my overdraft open.

sorry if i have rambled on...

You cannot transfer an overdraft to a credit card, but you could apply for an MBNA card which will permit transfers to a current account (there should be a promo rate too - check them out).

Would suggest you only transfer the amount needed to clear the overdraft rather than transfer the maximum amount.

Hartley10

Not sure that you can transfer an overdraft to a Balance Transfer offer - I think that the CC company would classed that as a "Cash" transaction which isnt normally included in a Balance Transfer offer. As "The Boss" states people like MBNA do offer Cash Transfers ie. move money from your CC to your bank account but even then no guarantee it will be at 0%.

The_Boss

Hartley10 wrote: »

Not sure that you can transfer an overdraft to a Balance Transfer offer - I think that the CC company would classed that as a "Cash" transaction which isnt normally included in a Balance Transfer offer. As "The Boss" states people like MBNA do offer Cash Transfers ie. move money from your CC to your bank account but even then no guarantee it will be at 0%.

Just checked and you can get a card with 5 9% for the life of the money transfer with a 1.5% fee or 0% for 24 months with a 4% fee on their platinum card. Unsure whether one of these has more lenient lending criteria (minimum salary etc) than the other.

Please do only use it to transfer a few hundred if you are accepted - fighting debt by switching to another source is generally fine but you ideally do not want to increase your debt. The minimum oayment would be a lot less than you can afford, but if you get the rate for life then pay it all off asap.