Advice on using a Credit Card to clear Overdraft

GeorgeRob

She rang Lloyds last night, and the first thing they did was give her back £80 for charges! Apparently they'll always give you back a maximum of £80 per year if you ask them to. I might try it!

They also said the charges (£6 OD fee, plus around £23 interest) are only made bi-monthly. So its really only about £15 each month.

So it looks like our options are:

1. She gets a loan out to pay the £1500 OD, paying back approx £35 a month for 50 - 60 months.. and eventually paying back around £2200. This is the least risky, but most expensive option.

2. I get the MBNA card for 16 months 0%, and money transfer to either her account directly, or to mine then hers, and she gives me £30 odd per month to pay it off. Then balance transfer onto another 0% card in 16 months. Hopefully. This would be the most risky, but least expensive option.

3. She continues with the OD, but lowers it by £20 each month until it's cleared. She will also be able to reduce it with larger chunks of money sometimes to speed it up. This would mean lower interest each month. But she will still be effectively throwing away £15 (and less as time goes on) on top of the £20 reduction each month. This would be slightly risky, as the bank could call in the OD, and this could also be expensive due to the number of years she'll be paying interest on it.

Decisions decisions!