Running out of ready cash

ekeir

I hope somebody can give me some advice as my finances have suddenly taken a complicated turn after being simple for many years. I have just spent loads getting a new kitchen fitted which cost a bit more than I was hoping. I have now run out of ready cash. I have some cash tied up in bonds but I have been advised that I would have to cash in the whole amount which I don't want to do.
I've worked out that next month I will be about £500 overdrawn. On top of that I'm going on holiday to Spain in a couple of weeks and will need to withdraw several hundred pounds for spending money whilst away. I normally use my Clarity card for withdrawals abroad and transfer money to the card from my Nationwide flex account whilst away.
So my questions are what is my best and lowest interest ways of getting back to not paying charges? As I've always paid off my credit cards immediately I don't understand all the different APR's etc. Would I be best to leave the travel spending debt on my clarity card and pay it off when funds are available or transfer the debt to my Flexaccount where I can be overdrawn up to £2500? Flexaccount has an interest rate of 18.9% EAR whereas clarity is 12.9% APR. Is their a better interest rate I could get by opening a new credit card account?

opinions4u

If you have to carry debt 12.9% is cheaper than 18.9%, so that question's answered for what credit lines you tell us about in your post - don't make it more complicated than it is.

There are numerous 0% credit cards (links at top of page), some for balance transfers, some for purchases, some for both. If your debt is likely to exist for more than three or four months one of these would probably be more suitable than Clarity.

As a balance transfer card would typically carry a 3% transfer fee and a purchase card a 3% foreign currency fee these probably wouldn't be suitable if your debt will be gone in a couple of months.

michaels

I agree a 0% spend card sounds ideal - something like the Tesco or halifax ones but also if possible put all your normal spend on to the 0% card leaing you enough in your current accoutn that you can get cash from their saving you the credit card cash withdrawal charges which will also often not be subject to the 0% deals.

YorkshireBoy

ekeir wrote: »

...or transfer the debt to my Flexaccount where I can be overdrawn up to £2500? Flexaccount has an interest rate of 18.9% EAR

The Nationwide FlexDirect current account has a free overdraft facility for 12 months from opening.

If you can get a £2.5K overdraft on it (perhaps by swapping some from the FlexAccount if necessary?) that solves your immediate 'problem'.

0% on hard cash takes some beating!

ekeir

Thanks all for your good advice. I will have a look at the Flexdirect account. If that wont work i will have a look at different credit cards. Thanks again for your help

pqrdef

ekeir wrote: »

I will have a look at the Flexdirect account. If that wont work

They're chucking them around like confetti. Just log in and apply. Instant decision, and running in a day or two.

ekeir

pqrdef wrote: »

They're chucking them around like confetti. Just log in and apply. Instant decision, and running in a day or two.

Having looked into flexdirect I'm not sure it will work for me. The reason is that being retired I don't have a lot of income. I think the way it would work is that I could have either a flexaccount or flexdirect. If I swapped to a flexdirect account I would lose the free holiday insurance as you need to be paying a large sum into your account every month. Otherwise it would be an ideal solution.

grumbler

Why can you not have both? A monthly credit to the Direct one is required only for getting 5% in-credit interest.

ekeir

I will look into it grumbler. I should be able to pop into a branch today. Thanks!

grumbler

Why going to a branch if you can do everything online?

jamesperrett

As you already have a Flex account, how about a Nationwide Select credit card? There's 0% on purchases for a year and foreign purchases are commission free so it will be good for spending in Spain. It also gives you an interest free balance transfer for 20 months with a 3% fee.

James.