Overdraft classed as balance xfer??

tallulah

YorkshireBoy wrote: »

100% agree!

A £700 overdraft (at 18.9% EAR and assuming it's returned once a month to zero when your salary is paid), will be costing around £5 per month in debit interest.

Moving the overdraft to a credit card will mean your minimum payments will be between £14 (at 2%) and £21 (at 3%) per month and you'll incur a (£21) fee for doing so (and each and every time you shift the debt, because I can almost guarantee that, if you can't address a £700 overdraft, you'll only ever pay the minimum on your cards).

Personally, I'd suggest addressing the reasons for the overdraft, ie start to live within your means. If you feel the pain (if £5 is a pain), then you're far less likely to run it up again.

Agree totally with your comments and thanks for those :T

You are right - however for me personally is not i can't live within my means - well i can't cause i have an over draft that does go back to zero everytime i get paid and yes i pay a small amount of interest on it - my thinking was that if i move to 0% credit card, i will be able to set up direct debit every month to pay off within the offer period, i.e 12months - any purchases would be min (and i do mean none) would be paid off in full every month (which do seem to go before balance xfer payments on the allocation thingys i was looking at ) Addressing just the minium payment on credit card is not something i want to do - but you are right something i really need to think about before deciding what to do - at least i know it is classed as a balance xfe. Thanks everyone for giving me more things to think about :eek: :eek:

ajames4RL

YorkshireBoy wrote: »

http://www.stoozing.com/cgi-bin/forum/YaBB.pl?num=1159043738

It's long!...but very informative.

Thanks for the link. I've looked it up and basically, in lame-man terms for me, get a &more CC, use this to buy TC from M&S, pay cheques into bank acc, only 1% fee.

12 Months would be ideal, but...

http://www6.marksandspencer.com/pages/default.asp?PageId=MI&Product=CC

have they updated their promotions to now only 6 months?

If I was looking to pay off the OD over a year... it looks cheaper (as well as less hassle) to use a CC with a 3% fee and paying a fee once, then having to pay a fee twice when I have to transfer the remaining balance over to a 3% card.
Will look into the egg shuffling thing... but not sure if it's worth the hassle of £36.