Overdraft / Money Transfer Question

bluesky1989

Hello everyone,

I just wanted a bit of advice on what to do about my overdraft.

I have approximately £400 in an overdraft which costs me £2 / day - usually this costs me about £30-£35 / month in overdraft fees.

I have approximately £6000 in a Barclaycard credit card. According to my budget plan I will have paid this off and my overdraft off by the end of October. This is with me contributing £600 and my husband contributing £600.

My choices are:

1. Continue paying £1200 / month and allow the excess in my pay to gradually get myself out of my overdraft by October.

2. Pay the £1200 I had planned this month, taking my overdraft to approx £2000, then do a money transfer from my Barclaycard costing me 0.9% or £18 transfer fee then 0% until January 2017. In my mind, the £1200 is used towards the outstanding balance of the credit card, approximately £4000 of which I'm paying 1.29% interest on.

Any opinions welcome. I'm new to this!

MallyGirl

1200 + 400 = 1600, not 2000. Where is the other 400 going?

are you allowed to go to £2k on your overdraft?
will this incur extra fees?
do you have enough headroom on the card to take it to:
6000 (start) - 1200 (payment) + 2000 (BT) + 18 (fee) = £6818. BTs aren't allowed to take you to more than 95% of limit (sometimes 90%) so your limit must be at least £7177 (or £7576 depending on your card's rules)

If you really can pay it off by October then I would keep on that track. If you can actually only pay £4818 by then and would need a couple of extra months to pay the £2k (by Jan 2017) then it might be worth the effort.

bluesky1989

MallyGirl wrote: »

1200 + 400 = 1600, not 2000. Where is the other 400 going?

are you allowed to go to £2k on your overdraft?
will this incur extra fees?
do you have enough headroom on the card to take it to:
6000 (start) - 1200 (payment) + 2000 (BT) + 18 (fee) = £6818. BTs aren't allowed to take you to more than 95% of limit (sometimes 90%) so your limit must be at least £7177 (or £7576 depending on your card's rules)

If you really can pay it off by October then I would keep on that track. If you can actually only pay £4818 by then and would need a couple of extra months to pay the £2k (by Jan 2017) then it might be worth the effort.

Hi! Thanks for the reply!

I'm taking into account a further £200 direct debits leaving my account by the end of the month minus £1200 so I suppose to be accurate I should have said £1800.

I have an arranged overdraft of £2500 - for each day I'm in it it costs me £2. Meaning that the overdraft costs me around £30 - 40 / month.

My limit on the Barclaycard is £13000 so I've definately got room.