Credit Card or Loan?

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

DCFC79

advicewouldbenice wrote: »

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

Forget the number used for the good credit score.

Could you not clear the OD if you cut back on the spending for a few months.

advicewouldbenice

I will be able to clear it soon but it will be 3/4 months before I can start making chunky £250+ payments

Tixy

You could look to see if you are able to get a 0% credit card that allows money transfers to your current account (MBNA backed cards are the most common that allow these).

If you are able to be accepted for such a card and if it had a sufficient limit then the transfer fee is usually 4%, so £46. Providing you pay on time each month and pay it off before the 0% period ends and make no purchases on the cards then you'd pay no interest.

You'd then be able to just pay the minimum payment for the first few months, and then pay off larger amounts in a few months time.

Given the timescales you have indicated you can repay this would make more sense than a loan.