Paying off Current account overdraft

dayo73

Hi everyone

Due to a dodgy couple of months on the budgeting front (unforeseen expenditure), I have an overdraft (arranged) on my current account which is about £1000. What is the best way to pay this off? Could I get a 0% on purchases credit card and pay it all off that way?

Cheers

Bongedone

dayo73 wrote: »

Hi everyone

Due to a dodgy couple of months on the budgeting front (unforeseen expenditure), I have an overdraft (arranged) on my current account which is about £1000. What is the best way to pay this off? Could I get a 0% on purchases credit card and pay it all off that way?

Cheers

Don't use a 0% card to pay it off. You will be charged the cash rate which is generally over 20%.

I am interested in the answer also.

CLAPTON

What is the interest rate on the OD.
Remember that unlike a CC debt, the OD amount fluctuates during the month so its often a cheap way of borrowing.
Typically how much interest are you paying monthly?

How much can you afford to pay off each month?


A 0% balance transfer will typical cost 3% fee so you can compare the BT fee with say a year of interest on the OD.

Some CCs will allow BT to your current a/c i.e. the MBNA stable of cards and eggmoney and there may be one or two others that provide CC cheques with similar charges and similar effect.

jonesMUFCforever

If the card is 0% on purchases I would use that for the next 2-3 months to spend on day to day things that you would normally pay out of your current account.

This should mean a reduction in your overdraft without you having to pay a balance transfer fee.

emmalt

I second ejones999's suggestion. Just make sure you pay the cc off before the 0% runs out.

Bongedone

ejones999 wrote: »

If the card is 0% on purchases I would use that for the next 2-3 months to spend on day to day things that you would normally pay out of your current account.

This should mean a reduction in your overdraft without you having to pay a balance transfer fee.

That is a good idea.