Overdrafts and negative balances: What's allowed?
in Banking, Insurance & Loans ·
Alright, I’ve got an idea brewing! Tell me if this makes sense or if I’m totally losing it here.
1. I’m currently sitting in the red. My effective APR is sitting at a brutal 16.50%.
2. Then there’s my credit card debt: interest is 12.0%... let's call the APR 13.5% just to be safe—I'm looking at a 24-month repayment plan.
If I take out a personal loan to cover everything—meaning the total amount of my overdraft plus what I owe on the credit card—and that loan has an APR of 11.95%...
...I’d wipe out the negative balance (which means I'd actually be working with a positive balance, assuming I ask them to cap my overdraft limit at $333 ) and finally kill off that credit card debt for good.
I’d lose way less money to interest, I’d be forced to make a set monthly payment toward the loan... and most importantly, I’d finally be in the black!
Am I right about this, or what?
Let me know what you think...
1. I’m currently sitting in the red. My effective APR is sitting at a brutal 16.50%.
2. Then there’s my credit card debt: interest is 12.0%... let's call the APR 13.5% just to be safe—I'm looking at a 24-month repayment plan.
If I take out a personal loan to cover everything—meaning the total amount of my overdraft plus what I owe on the credit card—and that loan has an APR of 11.95%...
...I’d wipe out the negative balance (which means I'd actually be working with a positive balance, assuming I ask them to cap my overdraft limit at $333 ) and finally kill off that credit card debt for good.
I’d lose way less money to interest, I’d be forced to make a set monthly payment toward the loan... and most importantly, I’d finally be in the black!
Am I right about this, or what?
Let me know what you think...