Overdraft; can a credit card help?

din_dons

I have a £7000 overdraft in my Barclays one account at the mo (before Barclays used to be called a loan pot) I am trying to pay off as soon as I can but the interest rate is 6.74%. I am paying £400 per month so should be cleared in 17 months.
Could I get a 0% credit card and pay off my overdraft say by a cheque or another way? Is it worth it or possible or could anyone recommend a different way.

Thanks

CLAPTON

6.7% is a pretty good rate

however, if your credit rating is good you could try

a. to get a 0% CC card for purchases and slow stooz... i.e. simply use the card instead of your bank a/c so reducing the interest being paid.

b. get a 0% or low LOB CC from the MBNA stable or eggmoney which allow you to BT from your current a/c. Although you will probably have to pay a BT fee you should save some interest.

din_dons

Thanks Clpaton
Already do A as the longer money in my account saves me interest on mortgage as well. Will look at B , silly question how do I use CC to clear overdraft is it a cheque or something else?
Thanks

din_dons

sorry for spelling mistake Clapton!

Voyager2002

din_dons wrote: »

Thanks Clpaton
Already do A as the longer money in my account saves me interest on mortgage as well. Will look at B , silly question how do I use CC to clear overdraft is it a cheque or something else?
Thanks

Search this forum (and the stoozing board) for the key phrase STB (super balance transfer). Or just tell MBNA/Virgin customer service people you would like to use a balance transfer to pay off an overdraft. Be sure you get the details of what they offer and ask here to check that it is a good deal before you actually let them do anything: there will be a fee involved.

YorkshireBoy

din_dons wrote: »

Will look at B , silly question how do I use CC to clear overdraft is it a cheque or something else?

http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards#MBNA

http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards#trick

A few words of warning:

1. If you breach the cards T&C's they'll remove the 0% rate, meaning you'll revert to circa 15.9% APR or higher, and

2. When you come to BT the remaining debt at the end of the intro period your existing commitments/available credit will be taken into account and you may not get another card, and

3. 0% deals may not be around in 12 months time, or if they are, they may have 5-6% BT fees attached.

din_dons

Thanks Voyager 2002 and Yourkshire Boy.
Have applied for a Virgin CC, but need to pay debt off before 15 months is up. So will need to be disciplined.

Have a great new year!

din_dons

can't spell Yorkshire, not even drinking yet (currently avoiding ironing)!!