Where next?


So I’m around 5 years out of university and circumstances mean I’ve never paid down my student overdraft. I have however always managed to keep it at 0% thanks to a good deal I got through my bank.

That deal is now ending and the Apr on my current account will be 19.9% on my £2000 overdraft. I bring in around 2400 per month and this has been well timed (deliberately so) with a large loan I took out to renovate my property when I bought it around 5 years back so I am in a position to start paying it down but not in the space of a month or two…maybe over a couple of years.

I am toying with the following ideas and was looking for advice as to which is best to go for:

Nationwide Flexdirect account to keep it interest free for another year and start paying it down a bit monthly so it’s a smaller amount to deal with in a year’s time.

0% spending card moving the debt onto this card by using it for all my spending over a few months. Pay off within the 0% period (think I’ll be eligible for around 2 years going by eligibility checks).

Loan (likely to be around 7%) over three years.

To me the best route is the 0% spending card but I’m a little wary as I’ve never had a credit card previously (I’m 32 but always spend within my means wherever possible so have avoided cards). I have a decent credit history, mortgage and loans etc all with no missed payments but suspect sitting on this overdraft will have tarnished my credit rating a little hence not being able to consider money transfer cards going by the eligibility calculator.

Am I going down the right route for keeping the debt as cheap as possible? I expect to pay off within the free period but if circumstances change would a balance transfer card keep it free for a touch longer? It almost seems to do.lle to get access to free lending.



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