Super Balance Transfers discussion area

bsms1147

4% fee, spread over 32 months, you could consider that an APR of around 1.5%.

Certainly beats an 8% interest rate.

Tixy

Sellurgranny wrote: »

Hi all,

Just wondered if there is an online calculator available which will help me to work out whether a money transfer credit card would be a good idea.

Alternatively, could anyone help me with the maths...

I have a statutory charge from Legal Aid bill on my property with an interest rate of 8%. The charge is £15k approx.

Ive been paying £200 a month of which approx £100 is taken up in interest charges. I feel like Im standing still most of the time with this debt but am keen to try and whittle it down as quickly as possible.

I've done the soft search on MSE website which suggests that I've a 90% chance of getting a 32 month money transfer CC with MBNA.

Assuming that I did actually get offered this deal, I want to check how much I'd be saving. I know its simple maths but my brain seems to have frozen and I just can't see the wood for the trees at the moment!

Thanks

Were you hoping to transfer the whole £15k?
Will you still only be paying the £200 a month?
To calculate any saving / cost then you also need to consider what you will do with the remaining debt at the end of the 0% period.

However given the high 8% rate then it is likely to be a good idea to do the transfer if you can, but obviously you ideally would want to be able to move any remaining debt at the end of 32months to not more than 8% apr.

Sellurgranny

Thanks Tixy & BSMS - I've been approved for 25 months at 0% for £4000.00. Whilst its not anywhere near the full amount (i didnt try for too much money in case my circumstances changed and I was left with a huge amount to pay off in 25 mths) it does allow me to at least throw some money at the debt without having to cop for the 8% interest on that amount. I've worked out that I need to pay £160 per month to clear the CC debt within the 25 months 0% interest period. Paying off £4k in a lump sum will at least reduce the debt amount on which interest is paid. (If im thinking about this in the right terms!?)

And yes Tixy, I'll do some sums to see what needs to be paid to service the rest of the debt both during and after the 0% interest period.
Thanks for your help guys!

thebritishbloke

Sellurgranny wrote: »

Thanks Tixy & BSMS - I've been approved for 25 months at 0% for £4000.00. Whilst its not anywhere near the full amount (i didnt try for too much money in case my circumstances changed and I was left with a huge amount to pay off in 25 mths) it does allow me to at least throw some money at the debt without having to cop for the 8% interest on that amount. I've worked out that I need to pay £160 per month to clear the CC debt within the 25 months 0% interest period. Paying off £4k in a lump sum will at least reduce the debt amount on which interest is paid. (If im thinking about this in the right terms!?)

And yes Tixy, I'll do some sums to see what needs to be paid to service the rest of the debt both during and after the 0% interest period.
Thanks for your help guys!

You need to remember that whilst £4,000 is at 0%, you still owe £11,000 at 8%. If you dedicate £160 per month to the 0% debt, then based on your original affordability of £200 per month, you'd only be paying £40 per month on the remaining £11,000. You would NEVER pay off the loan with this, literally never.

Might be worth you posting on the Debt-Free Wannabe board with a statement of affairs so people can help you figure out the best way to clear your debt

Sellurgranny

Thanks thebritishbloke,

I understand what you are saying - I know that the debt is going to take a really long time to clear - years and years, but I thought that in the short term, it would be better than just plodding on paying £200 a month with 8% interest - 50% of what Im throwing at the debt being swallowed up with interest before I even start chipping away at the debt. Its possible I may be able to put more than £200 towards this debt but this is pretty much the target I have set myself as far as affordability goes on a monthly basis.

It would be worth me reassessing my state of affairs although I have been a regular on the DFW boards for the past year. As a single parent, my income isnt ever going to allow me to slash this debt much quicker than Im already going. I thought doing the money transfer would be a bit more money savvy of me within the realms of what is possible.

Tixy

Does the court order allow you to drop your payments on the debt from the current £200pm if you pay off a chunk?

Sellurgranny

HI Tixy, There's no court order, the statutory charge is secured upon my property but I've had a conversation with the LSC who wanted me to put a repayment plan in place that at least covers the interest being charged on the debt - which of course is a good idea. £200 is just the figure I can afford at present. I have in the past paid more per month but £200 is my usual figure. The LSC aren't particularly helpful in sending statements of the debt unless requested - i think they may do one a year. It would be helpful to have them say every quarter so I can see what the debt is doing!

penuwchmike

Hi everyone, was wondering how you know before you apply for a card how much credit will be available. I've got a loan of 3500,is this a realistic amount to be given? I've got so so credit rating with a projected 50% chance of getting the fluid card and 40% of getting the mbna card. I don't want to get rejected if I can't get the amount I need any way. cheers, Mike.

Bren12

Can someone please explain why someone would use the Barclaycard balance transfer from another card at 3.9% when they can transfer cash to their bank account for 1.9%. I want to pay off another credit card so is there any reason why I can't do the cash transfer to my bank account and then pay the card off?

Tixy

Bren12 wrote: »

Can someone please explain why someone would use the Barclaycard balance transfer from another card at 3.9% when they can transfer cash to their bank account for 1.9%. I want to pay off another credit card so is there any reason why I can't do the cash transfer to my bank account and then pay the card off?

Do the promotions they are offering you last the same number of months?
Barclaycard only offer money transfers to some customers and only some of the time. If you have a promo deal from them at those rates and they last the same amount of time then you are right that the money transfer would be the better option for you.