transfer from egg to another card

bwatt00

I have a egg card with a bit of credit to pay yet,i also have a sky card which has offered me for a 2.9% fee to transfer over to them,they offer 2.9% interest on the transfer intil 1st june 2009,how does one work this out how much interest i pay over the months,is this a good deal?I first thought it was 0% but only just noticed its 2.9% which is not so good,ok its better than what i be paying with egg now,but if you pay the transfer fee and what 2.9% amounts to compared to egg now,is it worth moving over.

Any

Firstly - is there currently any balance on the SKy card? Because if yes, then any payments will apply to the cheapest debt first. Therefore you would be paying off your new deal but interest would be growing on your previous balance.

As for the fees. Are you sure they offer 2.9% interest??? Isn't it just the transfer fee?? What exactly did they say? Because if not, if it works just like any normal BT with 2.9% transfer fee and 0% on BTs until June 09 it would be like this:
You have balance of £1000. You transfer it to Sky who charge you 2.9% (£29) for the transfer. And that is it. If you pay the whole £1029 by the June 09 then the £29 on the top is all the extra cost you incurre.
This is how BT on special promotions work on most credit cards out there.

bwatt00

Well it is 2.9% transfer fee and i thought it was 0% interest until june but i read it again and says 2.9 interest as well,in the past when i have had this offer its been 0% interest but now i see 2.9% i have ripped up the leaflet i got from them now which you fill in a cheque and send to the card you wish to pay off,i have no credit in my sky card of where the credit from my egg card would come from.
I thought this was a good way of getting low monthly payments etc for a few months anyway,but is it still good on 2.9% interest

bwatt00

Well just looked at the bits i ripped up and it says:

enjoy 2.9% interest with sky card cheque

A 2.99% fee applies to each cheque amount
2.9% offer only applies to the cheque amount and not card purchases.

I have a cheque ready to send to egg to transfer to sky,but am wondering if this is a good deal or not,i first thought it was 0% like they have offered in the past but looks like its not.
How do you work out the interest paid each month on the 2.9% they say they will charge,i suppose its much less than what i be paying egg now,but the time you pay the 2.99% transfer fee and take up this offer is it that good?

Any

Well that depends how much are you transfering, what APR have you got on your EGG and how much are you able to pay off a month?

bwatt00

well i would be transfering over £3000,not sure what the rate is for egg right now 17% and i am probably paying the min each month,well until i get enough to pay it right off.
But if i can save by transfer with this deal i would,but not if great saving,on what i pay egg right now almost it all goes on interest,very little paid off on my amount.
Problem with transfering to sky card is i would then be adding another 2.99% to my amount and then 2.9% until june,is it worth moving?

Any

If you transfer:
£3000 + 2.99% transfer fee = £3092.46
next month £3092 + 0.242% monthly interest = £3099.5
next month £3099.5 + 0.242% monthly interest = £3107.02

If you don't:
£3000 + 1.42% monthly interest on Egg = £3043.21
next month £3043.21 + 1.42% monthly interest = £3087.05
Next month £308.05 + 1.42% monthly interest = £3131.52
(illustration without minimum payments)

So as you see on month 3 you are already paying more on the current deal. And we are talking about low interest for 9months.

YorkshireBoy

Your Egg balance is accruing interest at 1.3097% per month (assuming 16.9% APR typical).

The Skycard balance would accrue interest at 0.2385% per month.

The difference is 1.0712%

Your 2.99% fee will therefore be recovered in around 3 months.

From January until June 2009 you are saving just over 1% per month on the interest...which you MUST pay off the capital to maximise the benefit to you.

Any

And NEVER EVER SPEND ON BALANCE TRANSFER CARD

Thanks YorkshireBoy, was trying to show in illustration hoping to make it easier to understand. But your explanation is easy enough :-))

bwatt00

Its all very confusing for me,so no idea whats the best thing here,i know ideal world would be to pay off the cards asap,and i hope to do that within a year or so.
I am also being offered from barclaycard 6.9% for the life of balance,how good is that deal and a 2.5% transfer fee,i already did this with them on a transfer before and was wondering how good it would compare to what i am maybe doing now,maybe best having all my eggs in one basket.

I own a virgin card,egg card,barclay card visa and mastercard,sky card,some with credit to pay and some with nothing to pay,also have a cahoot loan,wondering what my best options are is reducing my interest in some of these or paying off the highest to lowest first.

What do virgin,egg,barclay,sky all charge on interest per month?

I dont seem to be getting anywhere fast on the cards i need to pay each month,whats recommended i do.
Plan on moving overseas in the near future and before i can need to try and get all my stuff paid off.

Any

If you have those credit cards you should know best what are the APRs they are charging you, just have a look at the statements.

When you compare 2.9% transfer fee and 2.99% interest
with 2.5% transfer fee and 6.9% interest
isn't it quite clear in the numbers?
It is probably better to keep all your eggs in one nest as you say. I suggest you go for the best deal and once moved you pay off as much as you can and then maybe do another transfer. This way you will make sure you pay as little interest as possible and therefore it will take you shorter period of time to pay it off.