good deal?

kingkano

I have an MBNA heart foundation card I was considering cancelling, but just got a letter from them with a new offer. Itsz 0.9% till sept using cheques or BT, with a max 50quid fee. My limit is 4500.

I will need to borrow 1500-2000 short term come May to pay for some works to my flat, but can repay that by end of year I reckon (after my wedding). But I also thought at that rate, I could take it NOW, stick it into savings (which earns me about 160 after tax for a total of 74 in fees/interest) and then pay that bill when it comes, pay the rest from savings back to the card - leaving a small profit and fees paid - then move the balance to 0% or pay it off depending on circumstances.

Is there any problems with the above (if it all makes sense)??? Is the deal ok? I definitely checked the print that it says cheques are 3% min3 max 50....

thanks in advance

Bokken_2

kingkano wrote:

I will need to borrow 1500-2000 short term come May

You should keep this matter separate from any stoozing.

kingkano wrote:

But I also thought at that rate, I could take it NOW, stick it into savings (which earns me about 160 after tax for a total of 74 in fees/interest)

Not sure your calculations are correct here I make it that you would only get £6 per month interest and on top of that any fees for balance Transfers I can't see you making any money between now and May.

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kingkano wrote:

then move the balance to 0% or pay it off depending on circumstances.

You have "slow stoozing" and "card tarting" mixed together here.I would read up on Martins articles on the Credit card shuffle and also stoozing then decide which of the above is going to be a piority making a little cash or paying of your £2000 debt.
Hope that helps

kingkano

hmmm I must have some maths wrong - in fact I think I just spotted it, i worked out interest earned for a year interest paid for 6mths doh! thats why I asked! thanks

I'll basically have to decide whether to take this deal or wait until May and hope I can get another card/deal/rate then for the bill I know is coming *grumble*

I was going to mix em up. that was the point really, 2 birds with one stone. as long as I knew what I was doing I dont really see a problem with it??? But definitely clearing the debt will be the top priority - if I could get it to clear itself using stoozing though Id certainly be keen to try!

Thanks for your help.

Bokken_2

kingkano wrote:

I was going to mix em up. that was the point really, 2 birds with one stone. as long as I knew what I was doing I dont really see a problem with it???
QUOTE]
Whatever suits you best will always be right and wrong for someone else.You can mix the slow stoozing and card tarting along with BT & SBT there are lots of combinations where the problems arise is the beginning and end dates for interest periods and 0% offers these are complicated further if purchases and BT are mixed on the same card.
As long as you are aware of these points you should be able to plan around any problems .
good luck.