Alliance & Leicester 1.9% per annum

paul_taylor_2

Hi All,
I have a £1100.00 debt on a special low rate interest balance t/fer of 0.716% (monthly) with tesco plat card. I have just received from A&L a low int rate for bal t/fers of 1.9% per annum, is this good and is it worth changing?
I have just paid £400.00 off the bill (it was £1582.00) and I aim to finish it within 3 months.

Many thanks for your help, Paul.

YorkshireBoy

0.716% per month is 8.9% APR

By my rough calculations, if A&L charge their standard 2% BT fee, the "break even" point is around 3.5 months. So, if you intend clearing the balance within 3 months, you'd be better off staying where you are.

However, if you can persuade A&L to waive the BT fee, then move the debt to them.

Robert_Sterling_3

I agree with the above analysis and conclusion.
I prefer to call the 8.9% the AER rather than the APR.

paul_taylor_2

Thanks guys,Paul.

MarkyMarkD

Robert_Sterling wrote:

I prefer to call the 8.9% the AER rather than the APR.

Heavens knows why, though, as everyone else calls it the APR in the context of borrowing as that's the legally required terminology.