Overdraft - Advice required

iamashoppingaddict

Hi guys,

A bit of advice required. I've recently got a virgin 0% b/t cc until xmas 2008 which I transferred a balance to from Egg. The balance currently stands at £620 and I'm going to pay £200 a month off it so it will be gone by christmas hopefully.

My question is that my overdraft currently stands, at todays date - all bills gone out, at -£773.23. The apr for that is 12.9%. Would it be worth my while transferring that to the cc card for 0% and pay it off that way (and cancel the o/d) or not?!

Not sure what to do!!

I'll post an SOA if helps!!

Thanks in advance.

Scarlett.1974

In theory yes, that sounds like it could be a good idea, as long as you pay the whole lot off before the 0% period ends, which it sounds like you could if you can afford to pay £200 a month

I know that Virgin CC's can transfer money direct into your account, so this bit wouldn't be a problem, but you'd need to check out 2 things:

1. That the transfer to your bank account could be included on the 0%.

2. The fee. (I know there definitely is one, because I've done this before but I can't remember what the fee is).

Oh and yes, definitely cancel the O/D if you do this!

It certainly can't hurt to post your SOA and see if there's any other money saving to be made:)

Scarlett xx

bellsbells

I did a similar thing to get rid of my overdraft of £1400. I got a 12 months 0% cc for purchases and used that for all spending until I had 'saved' enough money in my current account to clear the overdraft. This took a couple of months. I then started paying off my credit card until it was clear. so saving me interedt each month. You do have to be disciplined not to spend any more money on the credit card however! I also reduced the overdraft down each month and I now only have a small one that I never use.

iamashoppingaddict

I think the transfer rate is 2.5%, so not sure if its more expensive to transfer the o/d or leave it as it is! Maths isn't a strong point of mine!