Pay high interest credit card with free overdraft???

cheksea

Hi,

I wonder if you can help me...

I am currently paying off debt, I have some that I have managed to move to a 0% credit card but I have a small balance on a credit card that i am paying interest on and it is winding me up!!

I was wondering whether, in order to pay the credit card off quicker, it would be wise to use my free overdraft each month to pay more off it?

It would mean i was overdrawn each month but I would have paid the credit card off in 8 months?

Any advice would be great, I want to be debt free and as soon as possible

andyfromotley

Makes no difference, you're in debt to the CC company or in debt to the bank.

I'd leave it and have the OD as an emergency fund.

FireWyrm

Overdrafts are rarely free, there is always either a daily charge or interest. If it is truly free - no charges or interest, then it might be the way to go, but you must destroy the original card when you do it to make sure you dont use it again.

twiggy86

My overdraft was completely free for years - I didn't use that bank so it just always stayed in the OD (about £480 overdrawn). Pre-LBM I didn't normally read letters properly. Next thing I knew I'd been paying 75p per DAY for being in my OD!!!! (Again pre-LBM of not checking accounts regularly).

So whilst it may be free now, what would you do if they started charging interest or a daily rate? It may (if it's like my bank) be more expensive than the interest on your CC. £480 on CC debt would not have cost approx £22 a month interest!

Hope that helps.

andyfromotley

Sorry i didn't read the Op properly and thought he was talking about the 0% card.

If its an interest card and definitely a FREE overdraft then yes of course, swap.