Interest free overdraft??

mum_2_1_boy

Hello everyone.

I have 2 overdrafts with hsbc. One is for £1250 and the other for £250. Both are up to their limits. The account with the £1250 od is the main account that I use. I am really struggling to get away from being on the limit of this od and often find that I go over slightly resulting in ridiculous charges. I do not want to increase the od as I have done that already this year. I am doing all I can at the moment to make money and save money.

Sorry for waffling but i'm basically wondering if there is a way I can transfer my od to a 0% cc or any other way to make it interest free for a while whilst I work on making some money to start paying it off. I am confident that if I can just avoid the interest and charges for a while, I can start to use my money to pay the debt off. As it is, most surplus money is going on interest and charges.

Thanks in advance for any replies

mum_2_1_boy

Anyone?

taxi73

You will need a 0% CCsuch as egg,mbna or virgin

mum_2_1_boy

Thanks for your reply. I thought it would be an obvious answer but have never had a credit card before. If I successfully get the credit card, how do I transfer my overdraft on to the card?
Sorry if my questions have obvious answers. Thanks to anyone that replies.

nickelodeon

Only some credit cards, such as Egg and Virgin will allow you to transfer a balance to your bank account to clear an overdraft so you have to apply to the right ones! Once you get the card you just do a balance transfer as normal to pay off the overdraft.
The other option is to open a new bank account, I think Alliance & Leicester still offer a 0% overdraft for 12 months, also they will match your current overdraft limit if you provide them with evidence and fulfill some other criteria, you'll have to check with them for the details, I can't remember all the information, sorry!
Most important thing is that once you have moved your overdraft, you don't go bakc into your HSBC overdraft! Therefore you need them to remove the overdraft and make sure you stick to a budget so you don't go overdrawn again and incur more charges and just end up with more debt!
Good luck!

mum_2_1_boy

Thanks very much for your reply. It's very helpful.

ani*fan

Hiya

If you get a 0% credit card you may not need to transfer the whole overdraft to give you a bit of space. For example, if your food budget is £200 for the month, put it all on the cradit card then you have a bit of leeway with the overdraft and can hopefully stay within the limits and not get charged any more, freeing up your extra cash to pay off debt.

This can be dodgy if you're not very disciplined. The temptation could be to use up the credit card AND keep the full overdraft. But it worked for me. Good luck.

mum_2_1_boy

Thanks for that suggestion. I would probably do something like that because my main aim is to get away from the limit . I do feel that i would be disciplined as I have definitely had my lightbulb moment.