Which of these will cost me less?

sarahdh

Hi,

I am about to purchase something and have two choices...

1. Purchase it for £377.10, pay it back at 0% at a cost of around £31 a month for 12 months = total price £377.10

or

2. Purchase it for £289 on an MBNA Amex card where the balance is already £241.87. This will make a total balance of £530.87. The Monthly interest rate is 2.5292% and I haven't got a clue how they work the minimum payment out (something like the greater of £25 or charges, fees & interest).

If I was to pay a similar amount per month on the second one (around £30), which would cost me more in the long run, bearing in mind I will only pay the credit card until the balance is what it was in the beginning (£241.87).

Sorry if I've confused you, any help would be appreciated!

SecretSquirrel88

You have said your monthly interest rate but what is your annual interest?

Dont quote me but I think you are about £2.00 better off putting it on the card that charges interest

GeorgeUK

That is an APR of 34.95%
OUCH!!!

You would probably be better off trying to get a new card that offers 0% on balance transfers and purchases. This would save you about £100 in interest over 12 months. And you would have a much smaller APR.

I think you are probably better putting it on the card too - a loan over 12 months for £289 @ 34.95% would cost £346.59 so you would definately be saving in the longrun.