halifax card says 0% so why do you have to pay 3%? Confused....

joughtib

sweetnsimple wrote: »

just hoping to pay off as much as i can:undecided. Do you think it's a good idea to get this card then?

Depending on how long you think it will take a pay off the card, depends on whether a 0% card, or a low rate for the entire balance transfer will be cheaper. Both will have around a 3% fee, but if you choose a 0% card, that moves to 17% after a year, it may work out more expensive than a card that offers 5.9% for as long as it takes to pay off the balance. Might be worth looking into, and seeing which one fits the bill.

sweetnsimple

could i not just transfer to a different card when the offer finishes?

NickX

sweetnsimple wrote: »

just hoping to pay off as much as i can:undecided. Do you think it's a good idea to get this card then?

I think the point that some posters is making that moving the debt is not paying it off.

Personally I think that it is a good idea because with the deal being 0% you will pay far less in interest and should be able to start getting the capital balance down.

If you are not able to pay the entire balance off before the end of the promotional period, then you will need to think about getting another 0% deal fairly close to the promotion expiry date to move the debt again. This will probably incur another fee but the fees are far less than the interest you would pay on a standard variable rate.

If you do not want to keep moving the balance every 12-15 months, then you could look at getting a Life of Balance (LOB) deal which charge interest rates of more than 0% but still a lot less than the standard variable rate and remain until you settle the debt for good.

Whichever option you choose do not spend on the card again otherwise this could have serious implications depending on the precise deal that you are on.

sweetnsimple

Thanks, the card has 0% on purchases for 10 months but i have no intention on spending on it.

joughtib

sweetnsimple wrote: »

could i not just transfer to a different card when the offer finishes?

The thing with transferring the balance at the end of the offer period is that you'll have another 3% to add to your debt.

benf90

To the OP, if you're new to balance transfers etc then I'd recommend reading through the guide on this site before you do anything.

It'll probably answer questions you haven't thought about as yet. If you still have any unanswered questions after reading the guide then there's bound to be somebody here that will be able to help.

You can get to the guide using this link:

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

Or just click on the 'Cards Loans' icon above and select the balance transfer guide.

Pollycat

Thanks, the card has 0% on purchases for 10 months but i have no intention on spending on it.

If you do the balance transfer, do make sure that you put the new card somewhere safe so that you can't spend on it, don't keep it in your purse or wallet.