cards which allow overdraft transfers?

ALYMAC76

my girlfriend is struggling with money at the moment so have sat down with her today and looked at her sums, she has £3700 on a virgin card and £750 overdraft, she has been paying £200 a month to card which is causing her overdraft to become what it is, my own view was get a new card out % free and put virgin debt and overdraft on i and see it as a long term debt and aim to pay it off say over 3 or 4 years by paying say £100 a month.

Anyone recommend a card which will give her a credit limit of say £5k on a salary of £18k which also allows to transfer overdrafts?

I was thinking Egg.

CLAPTON

-If you're thinking 3-4 years then consider a low Life of Balance card as otherwise you have the problem of getting new cards after rthe 0% period runs out and the APRs shoot up.

- dont let the tail wag the dog.. the biggest debt is the CC and not the overdraft... reducing the CC APR is well worthwhile even if you can't BT the OD.

However, presumably she could BT the Virgin card to a new card then BT the OD to Virgin , then BT the Virgin again..

I'll assuming of course she has a very good credit record as the best cards tend to be so restricted.

YorkshireBoy

£100 per month is a 2.25% minimum payment on £4.4K. If her budget is tight be sure to avoid 2.5%/3% minimum payment cards.

Has she addressed the reasons for the debt accruing in the first place?

She's asking for further credit of £5K on Egg (to be able to BT 95% of her debt) which, in terms of available credit, and when added to her existing facilities, will represent around 61% of her salary (and more if she has other available credit you've not mentioned).

Egg may consider this is a problem, depending on other factors they will take into consideration.

bigstevex

If she wants to clear her debt altogether would a loan to clear both and then cancel the card/overdraft be an option, assuming she can get a good rate (~6-7%) at least she can pay it off gradually then at a set amount!

p.s i don't know if thats the best advice though as if she keeps the card then she might be tempted to re-spend on it after she gets the loan, which obviously is a big no no!

ALYMAC76

bigstevex wrote: »

If she wants to clear her debt altogether would a loan to clear both and then cancel the card/overdraft be an option, assuming she can get a good rate (~6-7%) at least she can pay it off gradually then at a set amount!

p.s i don't know if thats the best advice though as if she keeps the card then she might be tempted to re-spend on it after she gets the loan, which obviously is a big no no!

thanks for the replies and steve thats my concern as well, would she tell me if she hit the cards again!

bigstevex

Sit next to her as she rings up and cancels the card, thats the best way! Or show her the debt free forums on here and show her the situations people can get themselves into when they let things get out of control. Could be an eye opener for her!