Money transfer to pay off overdraft?

Warble1

Have posted this in dfw but is probably more suited to here. I applied and was accepted for a 0% balance transfer card yesterday to get my credit card balance swapped over but I also have an outstanding overdraft of £1760. Considering I just applied for the balance transfer card yesterday is it a good idea to apply for a 0% money transfer card as well in order to clear this and be able to cancel my overdraft facility?

Unfortunately I also have a loan, if I did apply and got more than £1760, would it be an idea to overpay the loan with it (it wouldn't clear the loan but I could keep loan term the same & reduce monthly payments) or is this a bad idea?

Thanks in advance

[Deleted User]

Using debt to repay debt is never the best idea in the world.

DCFC79

Warble1 wrote: »

Have posted this in dfw but is probably more suited to here. I applied and was accepted for a 0% balance transfer card yesterday to get my credit card balance swapped over but I also have an outstanding overdraft of £1760. Considering I just applied for the balance transfer card yesterday is it a good idea to apply for a 0% money transfer card as well in order to clear this and be able to cancel my overdraft facility?

Unfortunately I also have a loan, if I did apply and got more than £1760, would it be an idea to overpay the loan with it (it wouldn't clear the loan but I could keep loan term the same & reduce monthly payments) or is this a bad idea?

Thanks in advance

It will only work if the reason for the overdraft has been rectified otherwise it will just crop up again.

Dobbibill

You need to ask yourself why you have....

a loan
an overdraft
and a balance on a credit card

This isn't a dig but without addressing the reasons you have them, they will occur again but this time you have substantial CC debt in the mix and 0% offers don't last forever.

Approach with caution!

Warble1

Overspending for many years has lead me here, I have spent months slowly changing habits by using ynab to track everything. I need to start somewhere hence the thought of clearing the overdraft & cancelling it. Interest & the loan payment take up a good chunk of income so until I can find cheaper accommodation to lower bills even further I thought it could be an idea, obviously I was wrong

TheShape

If you have a plan to clear the debt already and if the use of a Money Transfer at 0% will simply help you complete that plan quicker/cheaper then why not. If the loan is at a cheaper rate than the cc and overdraft maybe just keep up with the loan payments and move the cc and overdraft debt to the 0% deals and concentrate on clearing the balance before the end of the 0% periods.