Paying interest on an overdraft? – STOP! Use this simple trick to save £100's

TotallyMoney.com’s top tips on Money Transfers

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TotallyMoney.com

If you play the 0% period on these card offers the right way, the value is fantastic. For most, it’s cheaper than any other form of borrowing on these sort of amounts.

(PRWEB UK) 8 November 2012

What are money transfers?
Money transfers are allowed by a few credit card providers and they allow you to transfer the amount of your credit limit into another account which you can then use to pay back your overdraft. There is a fee for doing this which is usually about 4% of the transfer amount.

You will then have the allotted 0% period of the card in which to pay back the credit effectively making your overdraft/loan into an interest free credit. This could save you £100’s over the lifetime of the balance.

When to use:
If you are paying high fees or interest on an authorised overdraft.
If you are a graduate who has been asked to pay back your authorised student overdraft one year after graduating.

Take action!
Say you are paying £1 per day on your overdraft as some bank currently charge if you are constantly in your overdraft this could add up to £31 per month! Some even charge up to £2 per day which could equate to up to £62 per month, over a year this could add up to a staggering £730 per year! To avoid this huge extra cost and pay back your overdraft with no extra cost use a money transfer card and then transfer the cash into your account to pay back your overdraft. You will then have the 0% amount of time in which to pay back the balance with no extra costs.

Examples

Santander
Overdraft - £1000
Arranged overdraft cost per day - £1 – up to a monthly max of 20 days
Over 12 months this accumulates to £240 in fees

Here is where the money transfer could save you hundreds…
On the above overdraft of £1000
Money transfer fee of 4% - £40
Over 12 months this is a possible saving of £200!!!

Halifax
Overdraft - £3001
Arranged overdraft cost per day for balances over £3001- £3
Over 12 months this accumulates to charges of £1095

Here is where the money transfer could save you hundreds…
On the above overdraft of £3001
Money transfer fee of 4% - £120
Over 12 months this is a possible saving of £975!!!

Will Becker, Chief Executive of TotallyMoney.com says ‘Money transfers offer people a real way to save £100s in fees and interest charges on authorised overdrafts for those who are in their overdraft for the majority of the month. We’re really disappointed to see the growth in borrowing on expensive overdrafts in the latest Bank of England figures. If you play the 0% period on these card offers the right way, the value is fantastic. For most, it’s cheaper than any other form of borrowing on these sort of amounts.”

What happens after the 0% period ends?
If you have planned correctly and paid back the budgeted amount per month then you should have paid off the balance of the card by now. However if you haven’t managed to achieve this then this debt is now just classed as a credit card balance so you are able apply for a different 0% balance transfer card and then transfer the remaining balance onto this new card.

The current top money transfer cards:
Fluid – http://www.fluid.co.uk
MBNA Platinum credit card - http://www.mbna.co.uk/credit-cards/mbna-credit-card/


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