Pay off overdraft With CC

Z

ZeroCool

Registered User
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Hey
I recently got a CC from my bank and I have a €950 overdraft I keep going into my overdraft every month and getting tired of this and can never seem to get on top of it. Would it be a good idea to pay it off with the CC then cancel the overdraft then pay off the cc over a few months as Im hopeing to ask the bank for a lone later on in the year so would this be a black mark on my record for useing the overdraft
Thanks
 
Hi there,
I would not advise you to pay off over draft with CC, I know you will probably have a grace period of x number of months with 0% interest. Will you be able to pay off a the the 950 + what ever you hvae added to it in that period???

You must weigh up all, have you thought of a Credit Union loan??? Another point and I hope you dont think I am speaking out of turn, but it is a wise thing for you to have a credit card, if you are struggling with an over draft?

I am speaking as a woman who spent 2 years getting a €4k visa bill down in 2 years, I had transfered to another bank as well, and the 0% interest get me in to more trouble... I have since taken the cards out of the wallet and they are only used to make travel arrangments!!
P.
 
If your credit card has a 0% balance transfer for this period of time and if you're very determined to get rid of this debt, then it might be a good idea. However, if you are currently finding that you can't afford to save anything each month, it would seem to make more sense to leave the situation as is and concentrate on reducing the debt as soon as possible, as overdrafts tend to have lower interest rates than credit cards over the long term. The main issue is if you feel you can reduce your expenditure and commit to repaying this debt consistently by e.g. €100 each month?
 
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Im very determined to pay it off so I could pay it off within 3 months, if that is the case would it be better to use the cc to pay it off then use monthly wages to pay off credit card and then????
 
Im very determined to pay it off so I could pay it off within 3 months, if that is the case would it be better to use the cc to pay it off then use monthly wages to pay off credit card and then????
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Can you afford to pay €300 per month?
 
I don't think that what has been suggested is viable anyway. 0% introductory rates apply to purchases, not cash advances as far as I know. I don't think you can pay off a loan by using your credit card, I would have thought you would have to withdraw cash and use this to repay the overdraft (I am open to correction on this). You should also bear in ming that cash advances generally attract interest from the time they are taken, i.e. there is no interest-free period.

If you withdrew cash on your credit card, repaid the overdraft, and then were able to transfer a balance to a new credit card and avail of a 0% rate on transfers, then it might work, but it's not something I would recommend, and seing as how you have just got a new credit card, I'm not sure you could do this.

As budapest says, you really should be looking at reducing your expenditure and thus reducing the overdraft.

The CU mightn't be a bad idea, but they may require savings before they will lend you money.
 
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