American express to Virgin?

The_Jester

I'm not quite sure how to work this out and wonder if someone can help me?

I have an American express cc with a balance of £2100. I pay 4.9% for the life of the balance. Would it be worth my while transferring this balance to the new virgin cc recently advertised at 0% interest foe 18 months?

I realise the fee for transferring this balance would be around £63. I would intend paying this amount in full over the 18 months.

I can't really work this out if it would be worth my while. Can someone help please?

anotherpaul_2

It depends how much you pay off a month and how quickly you start paying.
Assuming you make equal payments of £150 per month, you clear the debt in 15 months and both options cost you the same (give or take a few pounds).

If you're going to pay more than £150 a month or make larger payments at the start, you should leave it where it is.

If you're going to pay less than £150 a month, or make small payments at the start and large payments later, you should transfer.

YorkshireBoy

The Virgin Money card is 16 months, not 18 months (unless you know of a special offer?).

If you were to pay £140 per month over the 16 month period the 0% card is better by only £7.36

However, if you were to pay only the minimum £25 on the Virgin card, and save the other £115 in a regular savings account, you'd make yourself another £30 or so in interest over the first 12 months...so you'd be around £40 up.

Plug your details into this 'is it worth it?' balance transfer savings calculator...

http://www.makesenseofcards.co.uk/btcalc.html