overdraft balance transfers

A question about : overdraft balance transfers

(sorry Ive posted this in the loans and debt section but felt it might be more appropriate here)

Hi

I graduated a year ago and have an overdraft with abbey of Ј1600 which they are calling in completely on 1 September (they're playing on small print(which i should have noticed)and won't budge at all on this).

I don't have the funds to pay any significant amount of that sum in the next month or so ..

and to complicate things I am going abroad on an internship for 12mths in about three weeks; it won't pay much after expenses, therefore I'm not sure if I can realistically convert it to a loan and pay much of it off in that year

I have no other significant debts or overdraft.

Ideally i need away to defer as much of the 1600 as possible for a year

I'm looking at maybe getting an egg card but that only gives me 6mths but still might be my best option

Anyone know any other cards that do overdraft balance transfers?

Or would using a new overdraft on a different current account work out better... or a loan I can defer payment on.. please help

After 12mths I don't mind if that 1600 has grown (atleast not too much) as I'll have more options and hopefully enough income to start repaying it.

Any suggestions warmly appreciated

Thanks

Best answers:

• You might be better of going for a "life of balance" low rate card. You could apply for the Egg card now, transfer your overdraft balance onto it and leave it there at 0% for up to 6 months. If you are going overseas, you would need to apply for the "life of balance" card before you go - transfer the money from the Egg card onto this card - a few card providers offer low rates from 2.9%. Try looking at moneysupermarket or similar websites to get comparison rates. Don't make too many applications as this will affect your credit rating.
  Whatever you do MAKE SURE that you pay off the minimum payment off the card each month and DO NOT USE THE CARD FOR SPENDING. Otherwise you will end up costing yourself a fortune in interest charges.
  Otherwise Barclaycard are offering 0% until next August on BT's but have been giving out quite low credit limits.
• MBNA card (or someone they operate e.g. Abbey, A&L AOL) would be best.
  They allow transfers to accounts, do 0% offers and best of all, minimum payments are really small (Ј5 a month whilst on 0%).
• You should really look for a worst case scenario too - what if you cannot get a card with an introductory offer period? Will you be able to afford minimum payments even if you do (should be no more than about Ј50/month)? Its unlikely that all the paperwork will be sorted out in three weeks so is it even possible to get a card in time.
  I'd approach Abbey again and explain your position. This may be best done in writing but, given your imminent departure, perhaps you should try and make an appointment at your branch. Go in there with an offer - at the very least you want to be able to say you will reduce the amount owed by as much as you can offer the next year and then make a firm commitment to eliminate the debt on your return.
  If you will still be legally resident in the UK then tell them this.
  If you can get a card I'd suggest you go for an MBNA one since the minimum payment is only Ј5 per month. If you can get an interest free card with them it would be ideal and they have been offering 12 month deals recently.
  Best of luck
• Thanks for the advice
  Appled for the egg card online, got turned down, not totally convinced why .. got a suspicion the same may happen with MBNA
  Do you know of any other cards which do overdraft transfers/ cash advance?
  Will be going to see Abbey tomorrow, and also Barclays who I have had a quite healthy account with for 6/7 years.
  Are there any loan alternatives I could persue, baring in mind I will only be able to repay a very small amount of the debt monthly (Ј50-100 max) over the next year?
  I'll obviously discuss this with my bank but just wondering what peoples thoughts are.
  Thanks again.
• Off the top of my head. Can you get some kind of career development loan ?
  J_B.
• I recently took out a Goldfish loan for Ј10,000 at 5.9%. My repayments are Ј192.35 per month, without payment protection. That was over five years.
  On that basis a loan of Ј1600 should come out at around Ј30 per month, or maybe just over, by my reckoning - I may be wrong. They have no penalties for early repayment, and you can do it online. Only thing is timescale may be a bit tight, so it could be worth giving them a ring.
  Hope this helps.
• Thanks for the replies.
  The internship I'm doing doesn't apply for a career development loan - think theres a specific list of organisations that qualify and mines not on it yet.
  I've just phoned Goldfish - apparently i've failed their credit rating aswell... Still not sure why.. I've been late with household bills (but paid before final warnings), got this overdraft obviously, a student loan.. but I'd think I'd still be able to get credit... any ideas folks?
• DO NOT KEEP APPLYING!
  If you fail once you will more than likely keep failing but your rating will look worse because of the number of searches showing a "desperation" for credit.
  Ask why you have been turned down and if you have time get your credit reports from Experian and Equifax (Ј2 for paper copies but you can order these online).
  Is there any reason why abbey are being so intransigent? It is only Ј1600 and if you decide to up sticks and leave the country just what exactly are they going to do? If you are willing to make an arrangement with them I really so no alternative other than forcing you to default which is really not in anyones interest. See how it goes with the banks that know you first.
• Basically Abbey are asking for the whole overdraft back rather than staggering it as I had not touched the account for 6mths so they say as it is not my main account they will not give me any credit.
  I've decided To try and get a graduate loan out of my main account (barclays) who i've had a healthy relationship with for several years. I can show proof of my internship, paid accomodation and a small wage from which i'll be able to repay - however i'm just worried as to wether they'll look at my credit score nd refuse it on that basis ( I don't really have time to fix my credit score and I can't get the online report to work, says it needs manual intervention when I order)
  I think you're right though I should be able to sort something out with Abbey.
  Thanks again
• Have you tried getting a graduate account? I opened one with Natwest Primeline a few months ago (link is somewhere on this website), they gave me Ј50 to open it plus a Ј2000 interest-free overdraft. There were no conditions about paying in my salary or anything like that, and in fact all I did was take the Ј2000 and stick it in my savings, then take the Ј50 when they paid that in too.
  Worth a look.
• Not sure what you're situation is, but are you able to convince a relative (mum, dad or brother or sister) to apply for a credit card with 12 months 0% balance transfer (MBNA will if you pester them enough about it on the phone). If it's "only" Ј1600 and only for one year, it's not an outrageous request.
  Balance transfers can be used to pay off other people's cards or overdraft balances - though you need to make sure the credit card is one that does a SBT (MBNA do).
• Thanks again people, you've made this process a lot quicker and less confusing.
  Things are looking better- barclays have kindly extended my overdraft so Ј1000 is definitely covered, I'm guessing I should be able to sort out some arrangement with Abbey for atleast the other 600.
  Going to see them today, probably see if I can come to some arrangement where I can convert the 1600 into some sort of loan/repayment programme so I don't need to use the aforementioned overdraft.
• I would definitely consider Barclays a last resort back up. Their interest rates are not the best in the world.