Can I pay off my lloyds TSB overdraft with a Halifax 0% purchase and balance transfer

leady2002

HELP!!!

Could anyone please tell me if I can pay off my Lloyds TSB current account overdraft, with a Halifax 0% purchase and balance transfer credit card?

Kind Regards,

Leady2002

jonesMUFCforever

I would not have thought so unless you have a 'mule' credit card such as Egg money ie you balance transfer sufficient funds to your Egg account then pay it in to your bank account.
Beware you might have to pay 2 sets of balance transfer fees if you attempt this.

The only other solution is to get a cash advance which will be charged at exorbitant rates and pay the money in to your account. IMO it will be cheaper for you to keep the overdraft!

YorkshireBoy

Alternatively, you could spend your way out of your overdraft by using the 0% on purchases for all your essential spending and let any credits to the account act to reduce your overdraft. Be aware though, that you are not technically paying off the overdraft...merely transferring the debt to a lower interest rate. You need to address the reasons for the overdraft to work your way out of this situation...and this normally means earn more and/or spend less.

Some numbers for you to think about...

To service an overdraft debt of £1,000 at 14.9% EAR costs just over £11 per month in debit interest. Shifting this debt to a credit card will mean you have to pay 2-3% of the balance each month...some £20-30 per month. Where is this extra money going to come from?