Credit Card and interest free overdraft

garyscottadamson

Hello!

I have a credit card with 17.5% interest with £1,380 on it. At present, I pay this off with £50 per month installments.

I've just gotten a £500 overdraft, that is 18.3%, However, It has 3 months interest free.

Should I in some way use the 3 month interest free £500 overdraft to pay part of my card?

[Deleted User]

An overdraft can be called in at any time. Would you be able to pay the £500 in one hit if that happened?

Tixy

If £50 a month is all you can afford then its not worthwhile. You don't want any debt left on the overdraft after 3 months so you'd only be talking about £150.

Assuming the minimum payment is less than the £50 you could pay a bit more this month and then 2 months of minimum payments (e.g. if the minimum was £25 you could pay £100, then £25 and £25).

But the interest saving would probably be less than £2.