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Best way to shift overdraft interest
zensnake
Posts: 3 Newbie
in Credit cards
Hi there folks,
I've just started to take some responsibility for my debts and im getting there. First step was simply paying attention to what i owed and where, rather than just ignoring them. Actually i found knowing my debt more liberating than not knowing.
Basically having moved my banking to alliance and leicester for the interest free overdraft, i still have a portion of overdraft that is incurring me interest charges everymonth.
I have a credit card with an interest free period and a capital one card with a 0% balance on it.
What steps can i take to eliminate or reduce the interest on the overdraft?
I apologise if this is common knowledge on the forums but i have looked around for similar threads, but to no success.
Thankyou
Bob
I've just started to take some responsibility for my debts and im getting there. First step was simply paying attention to what i owed and where, rather than just ignoring them. Actually i found knowing my debt more liberating than not knowing.
Basically having moved my banking to alliance and leicester for the interest free overdraft, i still have a portion of overdraft that is incurring me interest charges everymonth.
I have a credit card with an interest free period and a capital one card with a 0% balance on it.
What steps can i take to eliminate or reduce the interest on the overdraft?
I apologise if this is common knowledge on the forums but i have looked around for similar threads, but to no success.
Thankyou
Bob
0
Comments
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In the short term 0% cards are an option, but usually attract a BT fee of around 3%. When the zero interest rates run out ( including the A&L account), then the problems start.
The safest way then, is to find a cheap loan or BT to a life of balance card, preferably with NO fee. There are a lot around at mo with roughly 6% apr. though 3%+ come around from time to time.
Also look at the min monthly repayment % and see if you can afford that, again the lowest % is best as it gives you more breathing space, to increase repayments in good months, and reduce payments in heavy outgoings months, without increasing the debt.
With 0% cards there is a lot of effort swapping around and the more you use over time the options get reduced and can block you into an undesired situation. Stoozing long term is best left to the "rich".
HTHs dcac's lovechild0 -
how much do you owe on the OD and how much can you afford to pay back each month?
It this your only debt?
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