What to do

toontastic

After buying my house and buying stuff for it I've managed to get myself back into my overdraft and also built up a cc debt as well. I've just switched my credit card to Virgin to get 0% on balance transfers for 15 months and purchases (which I won't use) till November. I've transferred my cc debt over so I know have £1400 on my virgin cc.

I've been slowly getting rid of my overdraft on my bank which was 0% on the first £500 and then whatever HSBC charge for the rest and I was hitting my limit which was £1250. I've got this down to about £1100 and hopefully will be able to eat into that more.

When i was on the phone to virgin they say they will put money direct into my bank so I can transfer my overdraft basically from HSBC to my credit card. The 0% on the first £500 runs out at the end of this month so I was wondering is it worth doing this or would they actually class it as a purchase and come November I'd end up paying 9.9% for everything ? If it is just a balance transfer should I do it and move all my debts to the card and pay them off as 0% (remember the 3% transfer fee) ?

Thanks in advance for the help.

oliveoyl

You need to clarify with Virgin whether they'll class the money to bank transaction as a Super Balance Transfer, in which case it should be the same rate of interest as an ordinary Balance Transfer, or a Cash Advance, in which case they'll sting you. It won't be treated as a purchase.

toontastic

Thanks, and if it is a super balance transfer is it worth transfering my debt over to them or is the 3% charge to much to make it worth while for just 15 months ?

toontastic

Just so you know I've checked and it is a super balance transfer that they do.

oliveoyl

I'd say that 3% isn't bad for 15 months. They all have the transfer fees attached these days.

To make the most of the 0% deal, instead of making any payments over the minimum monthly repayment, put any extra you want to throw at paying off your card into a high interest account instead, and pay off a lump sum just before the 0% interest finishes.

toontastic

oliveoyl wrote: »

I'd say that 3% isn't bad for 15 months. They all have the transfer fees attached these days.

To make the most of the 0% deal, instead of making any payments over the minimum monthly repayment, put any extra you want to throw at paying off your card into a high interest account instead, and pay off a lump sum just before the 0% interest finishes.

I just worked it out and believe I would have paid HSBC £210 in interest payments if I leave it with them so I'm going to transfer the money over where it will only cost me about £40 so technically I've just saved £170 wahoo