Going to SPEND £3000 - best way to do it?

Roxy68

Hi - I am looking to spend about £3000 on a family holiday. I have to use a credit card. My options, MBNA are not offering me anything special except their 'lifestyle protection' @ 79p per £100, this amongst other things will give me a months payment holiday! Now if i pay on this card then immediately get a balance transfer from barclaycard (2.5% fee) @0% till Jan 2010 is it worth a shot?? I am thinking i will have a payment break for 1 month from mbna - then after the month be on barclaycard @ 0%. Do you think it will work???

duggie1982

I would not take the 'lifesyle protection' it will cost you £23.70 just for 1 month. I would just pay using the card and then do the BT. Make sure you have the barclaycard and offer. eg. dont apply for it once you spent on mbna. Although the insurance is upto you!

Roxy68

Hi again - i only thought if i took the insurance - i could get the 1st month free payment holiday - then by the time i am due to make a payment the balance would have been transferred to barclaycard.

duggie1982

well its upto you, but yourstill going to have to pay the interest still? Its only a payment break so they normally still charge the interest and the 79p on each £100. If you have both cards the now then use the mbna then do a transfer right away. That will stop the interest and the payment protection costs.

Roxy68

Will do - although found i have zero balance on egg so will use that since the rate is lower then transfer to BC. Now off to buy my holiday! Thanks for your assistance.

BenL

If you are buying it today its a little late but normally a 0% on purchases card would have been the best bet.

cash-magnet

I'm sure I've read a few articles advising people against going into debt over a holiday. 2 weeks of sun (you hope) followed by 12 months of paying for it with interest on top. You'll probably be asked to pay a 2-3% charge on top when you book to pay using a credit card. Ideally there would be no charges, it would be a cashback card and you could immediately do a balance transfer to a 0% card in an ideal world. Personally I'd have saved up for my holiday in advance,

lisyloo

Good point cash-magnet especially in this climate.
If you want these things then you should save up. You will ultiamtely be a lot better off.

In this climate the possibility of job loss and having trouble paying it back is very real.