Pay off 0% transfer, or 1.64% first?

bigdavethehorn

Hello, I have an MBNA card with an approx. balance of £6700.I've just opened a Santander card and requested a transfer of approx. £3500 from the MBNA card, leaving approx. £3200 on the MBNA card.From looking at my most recent MBNA statement, it appears that I'm being charged 1.64% interest per month on the outstanding balance.Santander will not charge me any interest for the next 15 months. Santander will however charge me 3% to transfer a balance from the MBNA card.My maths tells me that it's cheaper to move money off the MBNA card and onto the Santander card ASAP. Does this seem logical, does anyone disagree?

CLAPTON

yes indeed do the balance transfer as 1.64% per month is 21%APR so a 3% BT fee for the next 15 months is a good deal.

cdixon1041k

Agreed. Your math is right. Do the balance transfer ASAP.


Chris