Paying off credit card with free overdraft

greenlightluke

Hi all,

Seeking a bit of advice - I have a £300 interest free overdraft with Halifax and I am considering paying off a chunk of my credit card with this.

My thought behind this is I'm not paying interest on my overdraft and the faster I clear my credit card the better right? I have £900 on the credit card, and while it isn't a huge amount I don't want to hold a balance any longer than I have too.

Or should I just chip at it bit by bit every month without going into the overdraft?

I just want to know what you all think of this? Any drawbacks etc that I maybe haven't thought of.

Thanks in advance,
GreenLightLuke

Sabbathdei

How about another credit card with a 0% balance transfer ?

pjread

What's your monthly spending... if it's about (or above) £600, you could pay it off completely with normal spend amount + the OD if necessary on pay day, then put regular spending on the card again but set up a full-payment DD and get the interest-free-until-statement thing going on which will effectively be as good as a balance transfer until you can save a bit to pay it off for good?

Sabbathdei

God help anybody coming on here for advice ! :eek:

greenlightluke

Thanks for the advice, I don't want to get a 0% Balance transfer just yet, I feel the balance I have probably doesn't warrant it.

I think I'm gonna target myself to get it cleared within 2 month,

Thanks for the help.

fudgecat

One thing to watch out for - banks can demand immediate payment of overdrafts.