To switch or see out the terms - Abbey Zero C.card

uberalles

Hello all,

I have been stoozing successfully for a few years but now have a predicament that I cannot get my head around.

1. I have £4900 on the Abbey Zero C.card for 6 months, no fee, 0% interest until dec 2008. I currently pay only £5 per month off the balance.

2. I also have a limit of £15000 on the Egg C.Card, for 15 months, 3% Balance transfer fee, 0% interest until Aug 2009, as long as I transfer pre September 1 2008.

3. I am going to put £7000 of other credit cards onto the Egg C.Card this month and incur the 3% charge and then pay back the minimum 2% per month. Once the 0% term expires I will transfer again.

4. My predicament is what to do with the £4900 balance on the Abbey Zero C.card mentioned in number 1.
Do I
a) Transfer it to Egg C.Card pre September 1 2008 in order to get the balance transfer terms.
or
b) Let the £4900 balance ride in the Abbey Credit Card, paying £5 per month , and then hope a good deal is available once the terms of the Abbey card expire in Dec 2008.

What would be most cost effective, anybody with any idea?
My concern is that I want to keep the £4900 I owe Abbey in my savings account earning approx 7% and in January it will contribute to paying another chunk off the mortgage.
I can afford to pay off the 2% per month costs minimum payment associated with the Egg Credit Card from my wages therefore will not touch the £4900 in my savings.

I think the part that is making me less decisive than normal is the £5 repayments with the Abbey and the fact I might not get the opportunity again of a good balance transfer offer.

Thanks all. :beer:

NickX

Well personal opinion, but I would keep the debt with Abbey Zero until the expiry of the 0% promotion.

The reason is that if you transfer it to Egg prior to 1st September 2008, then you lose 3 months of the promotion (over half actually) and you will pay an additional 3% to transfer.

On top of that the repayments to Abbey Zero are a negligble £5 per month.

However, as you are clearly aware, there is no guarantee that you will get another decent 0% promotion in December, so you have to be prepared to settle the debt from savings.

It is your decision at the end of the day, and I guess the answer is dependent on how much you really want to extend the £4900 debt.