Help please. Need to transfer a large overdraft somewhere cheap??

Cheese_and_biscuits

Hi - this is the first time I have used this site. I have a large costly overdraft (£3,500) with a bank which costs me a lot to service monthly. Is there any bank transfer deals around for overdrafts (not credit card debts). I am able to py a monthly sum to pay the overdraft off...it's just that the bank is clawing back a lot of what I pay in interest on the overdraft. Thanks in advance of any advice.

nicp60

You'd have to apply for a current account with that size of overdraft, although to be honest they're all pretty hefty in terms of charges and interest.

The other option is to do a super balance transfer to a new credit card. This charges 4% at the moment, but is 0% for 26 months. More infor here: http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

You could always just bite the bullet and repay it monthly through cutting back on your expenditure too.

kazwookie

Cheese_and_biscuits wrote: »

Hi - this is the first time I have used this site. I have a large costly overdraft (£3,500) with a bank which costs me a lot to service monthly. Is there any bank transfer deals around for overdrafts (not credit card debts). I am able to py a monthly sum to pay the overdraft off...it's just that the bank is clawing back a lot of what I pay in interest on the overdraft. Thanks in advance of any advice.

They will all charge you.

I suggest you look at what you use this money for, and how you can start to pay it off / cut back on other stuff.

worried48

Unless you can get a 0% credit card, I would think your chances of doing much better than your present overdraft are fairly low, sorry.

Thrugelmir

Ask your existing bank if they will convert the overdraft into a loan at a lower interest rate. This has the added benefit of disciplining you to repay the debt. Not merely transfer it.

CLAPTON

you have an overdraft of 3,500 and it cost you ???????? per month and would like something cheaper?

jonesMUFCforever

OP what is your credit rating like - can you get one of those cards with a long 0% PURCHASE deals?
If you can then you use that for all purchases leaving money in your bank account to reduce the overdraft.

This will only work however if you have a plan to repay the balance before the end of the promotional period or you will be worse off than now.

John1993_2

While you look for this short-term solution, you also need to think about how you intend to pay it off. Overdrafts are for short-term cash flow issues, not for long term borrowing, and if you are using yours this way then what happens when you genuinely have a problem? You'll likely have to turn to payday lenders, and will be in a world of trouble.

May I suggest that you post up a statement of affairs, and allow people to try to advise you?