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Overdraft charges looming

Hi guys I’m new to this forum , thankfully I am a MSE regular and keep on top of my finances as much as possible.

My dad on the other hand isn’t he has a big overdraft with NatWest at 7k. He is 65 and works full time. His credit score isn’t great and he’s not a fan of credit cards at all.
If I was to get him to get a credit card in his name I fear it would only be for 6 months. I don’t know if a credit card for people with bad credit would be allowed to move 7k. Even if I shifted some debt into a 0% card for 6 months then got him another he would end up paying some interest but less than on 7k. Is this my only option or is there something else I can do?

Really hoping you guys can help a little as I’m worried he’s going to get hit with the 39.9% interest that’s looming.

Thanks guys

Comments

  • eskbanker
    eskbanker Posts: 35,149 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Gidged500 wrote: »
    My dad on the other hand isn’t he has a big overdraft with NatWest at 7k. He is 65 and works full time. His credit score isn’t great and he’s not a fan of credit cards at all.
    If I was to get him to get a credit card in his name I fear it would only be for 6 months.

    [...]

    Is this my only option or is there something else I can do?
    Is there any reason why he can't take ownership of this himself?
    Gidged500 wrote: »
    I don’t know if a credit card for people with bad credit would be allowed to move 7k. Even if I shifted some debt into a 0% card for 6 months then got him another he would end up paying some interest but less than on 7k.
    Anything at 0% would be better than nothing but you're undoubtedly right that it's far from guaranteed that he'd get anywhere near the limit he'd want to get the whole balance shifted.

    In your shoes I'd sit down with him and show him how to check his credit files (for any inaccuracies or suggestions) and review likely eligibility for credit cards.

    Also read through https://www.moneysavingexpert.com/banking/cut-overdraft-costs/ and consider completing a Statement Of Affairs and posting it on the debt-free wannabe board for other ideas about how to address this debt.
  • born_again
    born_again Posts: 18,289 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Just make sure its not a"Balance Transfer " card. he will need on that allows for cash transfers. Which seem no to be hitting 5% charge.

    Might be better looking at a low cost loan.
    Life in the slow lane
  • JuicyJesus
    JuicyJesus Posts: 3,830 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Go to MBNA or Barclaycard. Get a money transfer card. Clear overdraft with it. Treat it as if it's a loan, set up a fixed Direct Debit for the resulting balance divided by however many months the card is 0% for. Job's a good'un.
    urs sinserly,
    ~~joosy jeezus~~
  • Thanks for all the reply’s. I understand what you’re saying eskbanker. I think he’s just been a bit careless and he should take care of his finances better. I feel that because I’m so good with my money I should help him get out of this sticky situation.
    Thank you for the links aswell
  • born again , JuicyJesus

    I shall look into a money transfer card see what is an option for him.
    Also going to look at a loan. I never thought of that ! Thanks again guys
  • Zero_Sum
    Zero_Sum Posts: 1,567 Forumite
    If he,'s got a bad credit history, might struggle to get a card with a decent credit limit to cover the £7k. For £7k a loan might be a better option and if can't get one from banks could try one of the P2P lenders. Might end up paying 15% but it's a lot better than 40%
  • That’s very true I’m going to look into loans with him as well thanks for the advice
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