overdraft or credit card ?

keigan1888

Hi

looking for a bit of advise , currently got an over draft of £1900 which i pay £1 per day (so £30/£31 per month ) if i took a credit card and shifted the debt to that would it be cheaper than the £360 per year im paying to the bank ?? im not great on how credit cards work , any ideas would be helpful

Thanks

keigan

sourcrates

keigan1888 wrote: »

Hi

looking for a bit of advise , currently got an over draft of £1900 which i pay £1 per day (so £30/£31 per month ) if i took a credit card and shifted the debt to that would it be cheaper than the £360 per year im paying to the bank ?? im not great on how credit cards work , any ideas would be helpful

Thanks

keigan

It would depend on the interest rate that came with the card.

I'm not a big fan of shifting debt around, but if you could get a 0% transfer deal, that may help you.

Is this your only debt ?

It's nearly always better to find ways to pay off the OD from your budget rather then further borrowing.

EssexHebridean

Agree pretty much 100% with Sourcrates very sensible post, BUT in this situation if you can get a 0% deal then IMO it's a no brainer. However, that comes with its own rules. You need to make sure you don't then add further debt by running up the overdraft again - was it caused by a one-off situation which is now resolved or is it a more general budget-balancing issue? You MUST NOT spend on the card - cut it up or at the very least stick it in a bowl of water in the fridge and freeze it. How fast are you paying the OD off? If you're not going ton be able to chip it away before the 0% deal ends then it may not be such a good idea for you.