transfer overdarft to 0% cc

sammyjig

I currently have £4815 limit left on a barclaycard with 14 months at 0%. I have a £2500 overdraft. Is it worth transfering the debt to the card at a fee of 2.5%?

I must add that I don't spend on credit cards any more!

sammyjig

is there anyone there?

Mozette

I suppose it depends on the rate of interest on your overdraft, and how quickly you would pay it off. I'm sure someone more mathematically inclined could then work it out.
Sadly I'm a bit rubbish at maths once you get past simple stuff like adding!

If you could give a bit more info, I'm sure someone could help you.

sammyjig

all I know is that my overdraft rate is 1.46 per month if that helps. I tend to pay about £20 in fees per month. There is a 2.5% for the transfer to the 0% card. for the £2500 I would transfer that would be 62.50.
I was just gonna do it as I thought it would be a good idea but as I'm a newbie thought I'd better check to see if any reason why I shouldn't do it.

poorandindenial

Not all credit cards will transfer a 'cash' balance so it might be worth checking for that. I know that barclaycard were throwing cheques at me up to three times a month (grrrrr) and they were going to be 6.9% for the life of the balance.

That said I had a crud barclaycard (they still classified it as student, I graduated 7 years ago!!) and they were whacking 29% on it so you are probably on a card with much more reasonable T&Cs.

Sassamac

depending on how overdrawn you generally are your OD is costing you upto £437.50 per year (17.5% APR roughly) so yes I would say the £62.50 fee is worth it as you have access to interest free debt for over a year.
Based on you saying it costs about £20 per month to be overdrawn I would say youre not too close to the overdraft limit very often as its only actually costing you £240 per year.

a few other things to consider though;
- can you pay off the £2500 in the 14 months, or;
- is your credit rating good enough to allow you to get a further 0% deal to transfer it you.
- can you do a balance transfer direct from your OD to your Barclaycard? if not you will have to put your monthly spends on credit card, whilst allowing your wages to pay off your overdraft. BUT your credit card will then be charged at the purchase rate of interest which is likely to be 15 to 20%

sammyjig

thanks for that Sassamac. I will look into it further before I do anything.