Cash withdrawal from credit card to clear overdraft

Beginnersluck

Hi,

I'm about to transfer my balance from one credit card where the 0% interest is about to run out, over to another 0% credit card. I have a pesky overdraft of £800 on my current account which is accruing about £6 - £10 interest each month. I'm wondering whether it would be worth withdrawing the cash on my existing credit card, paying off my overdraft with it; and then shifting my existing credit card balance plus the cash withdrawal over to my new 0% card.

I know I'll be charged interest on the cash from the day I withdraw to the day I shift the balance, which should only really be a matter of days (5 at the most). The interest on cash withdrawals from my existing card is 24.9% annually but no one at the bank can advise me how much interest I would get charged for that 5-ish day period.

Adding £800 to my existing credit card balance will take the 3% balance transfer charge to my new credit card from ~£36 to ~£60, which I can handle.

My real concern is whether I'm going to end up with a heafty charge for the cash withdrawal for those 5 days. Would it be worth it? Bearing in mind I'm paying about £70 to £100 in interest each year for the overdraft anyway.

Thanks!

CLAPTON

800 x 24.9% x 5 /365 = £2.78 approximately

it really should be taught in schools.

lisyloo

but no one at the bank can advise me how much interest I would get charged for that 5-ish day period

Estimating the interest is quite simple.

Are there cash advance charges on your card?

If you can't use google or can't read the Ts&Cs then tell people on here which card it is and someone may be willing to do the legwork for you.

onerickylambert

There is a 2.99% fee (£24) for withdrawing cash on your credit card. Five days interest is £2.78 going on CLAPTON's math. Another 3% fee for the BT (£24) means it's gonna cost you around £50.78 to do this.

If your overdraft costs £100 a year as you say that's £8.33 a month. So if you can clear your overdraft in 6 months or less don't do it. If you work out your O/D will take 7 months or more to clear then it's probably worth it.