Balance Transfer or pay interest?

bogeysmum

I have a Platinum Mastercard from Capital One which offered 0% on balance transfers and spending until Feb 2009. I still have approx £2,500 on this card which I reckon will take me another 4/5 months to clear at best. Now that the 0% deal is about to end I don't know whether it would be better to apply for another 0% card, transfer the balance and pay the fee, or stay with Capital One and just pay the 5.9% for the next few months. My decision is further clouded by the fact that I have an interview for a new job tomorrow which potentially would allow me to pay off the balance more quickly. What should I do????

YorkshireBoy

I'm assuming your 5.9% figure is a typo, and that you meant to say 15.9%?

If so, and applying a very broad brush, your interest charged over 5 months would be around 15.9 / 12 x 5 = 6.63%.

Compare 6.63% with the 2-3% fee you'd normally pay for x months 0% and it would normally be a no-brainer!

However, if successful with the job application, how quickly could you get the £2,500 together? Your key figure here is the monthly rate of 1.24%, ie if you can settle within 2-3 months it could be better to leave it. Then again, paying a 2-3% BT fee gets you another x months 0% meaning less of a strain?

I know what I'd do.