0% Credit Card to pay off Overdrafts??

Not sure if this is the right place for my question but any advice would be gratefully received.
I have an O/D with Natwest current limit £600
My OH has an O/D with RBS current limit £850
We have a joint account with Abbey current limit £400
We are trying to reduce the O/D to a more manageable amount (ie £0!) but are struggling at the moment as we are paying out £140 a week in childcare due to the school holidays.
We both work full time and if we can get rid of these O/D we will be much better off financially. At the moment we dont have enough left to cover all the bills.
Is it possible to use a 0% credit card to pay off the £1850 in overdrafts then pay off the credit card asap? If so which are the best ones? Neither of us have a credit card at the moment as when I paid off my last card (Abbey) I cancelled it.

Replies

  • MagpyeMagpye Forumite
    607 Posts
    Most credit cards will charge interest on money transfers from the date of transfer until the balance is paid in full, as these money transfers aren't counted as purchases. However it might be worth shopping about for a deal as terms and conditions vary - I couldn't say for sure.

    I hope you don't mind me offering advice but if I were you, I would take out a card with a long 0% offer and use it for as many everyday purchases as possible (even better if you get cash back on the purchases) - letting you put hard cash to the O/Ds until they're clear, and then work on the credit card balance. If time runs out, you can always tart it across to another 0% deal (on balance transfers) and although you will probably have to pay a fee on the balance transfer, it's likely to be substantially less than charges incurred on an O/D, particularly an unauthorised O/D.

    I do sympathise as I am in a similar situation myself. This is a longer term approach than trying to pay off your O/D with a transfer, but probably safer in the long run - I hope!!
    "All cruelty springs from weakness" - Lucius Annaeus Seneca
    Personal pronouns are they/them/their, please.

    I'm intolerant of wheat, citrus, grapes, grape products and dried vine fruits, tomato, and beetroot, and I am also somewhat caffeine sensitive.
  • YorkshireBoyYorkshireBoy Forumite
    31.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    Loads of options for getting cash at 0% from a credit card, including MBNA (and MBNA run cards), Egg Card, Egg Money (& donor card), Mint cheques and the M&S travellers cheque loophole.

    Whilst a 0% BT from your current account may help you longer term (providing you address other issues such as overspending and budgeting for childcare costs for example), it's unlikely to ease things through the school holidays because it could be 3-4 weeks before you see the cash in your account, and the kids are back at school a week or so later.

    One thing you may have overlooked...you'll (probably) pay a 3% BT fee, and then your monthly payments will start at 2-3% of the balance. Now unless you have an extremely high overdraft rate, these outgoings will be more than the debit interest you're paying each month at the moment. If you're struggling now, where is this extra money going to come from?
  • Jo.GJo.G Forumite
    190 Posts
    Thanks for your advice. Its not as straight forward as I thought! I just had it in my head that this would be the easiest and quickest way to get rid of the debt without getting a loan. Will have another think and go through our finances - again!
This discussion has been closed.
Latest MSE News and Guides

Who can suggest a top-notch bed?

This Forumite's mattress is in need of a base

MSE Forum

Top theatre lotteries

How to grab £10-£25 tix for Cabaret, Matilda etc

MSE Deals