Transfer of overdraft to credit card?

advicewouldbenice

Hello everyone,

I am hoping this is the right board to post this?

I have a £1150 overdraft on my current account with Halifax and this is currently costing me £29 a month in overdraft fees.

I wondered if it was possible to shift this debt to a 0% credit card by way of a balance transfer?

On a good salary, own home (with mortgage) and have a good credit rating.

Or would I better getting a loan and paying the overdraft off?

Any advice would be brilliant, thanks xx

[Deleted User]

You'll need a card that offers money transfer - eg MBNA.

advicewouldbenice

thanks, so do they normally let you move an overdraft?

Never done this before

[Deleted User]

A money transfer will allow you to pay money from the credit card into a bank account. You can then move that money anywhere - ie pay off the overdraft, pay off a loan, buy One Direction CDs, etc.

The equivalent debt will then be sitting on the credit card.

A fee of around 4% is normally incurred for the transfer though.

SnowTiger

advicewouldbenice wrote: »

thanks, so do they normally let you move an overdraft?

See http://www.mbna.co.uk/credit-cards/mbna-credit-card/:

Money Transfers

Transfer funds from your credit card account to your current account - enjoy 0% interest for 24 months from account opening (4% handling fee). This offer applies to money transfers made within the first 60 days.

Whether someone with an overdraft of over £1,000 will be accepted or not is the big question.

bigadaj

OP, an alternative that might help if you don't qualify for the 0% balance transfer might be to get a 0% purchases card, then direct all spending onto this and allow your salary to pay off your overdraft. Will take longer and you would need to be disciplined on spending but might help.