Need help with calculations

sarahs999

I've got a new balance transfer card with Abbey with a credit limit of 4,000. Once I've filled that up, it leaves me with 1,353 on a Capital one card, which is due to run out of its 0% period on 21 August. It then becomes 18.32% pa.

I have an offer from Virgin of 0.9% until 19th November, with a 3% BT fee. My question is (assuming that I can pay off the 1,353 by 19 November) is it worth doing that balance transfer? Or will it end up costing me more? I realise that it depends how quickly I can pay it off so I suppose I need to know when do I need to have paid off the 1,353 to make it cheaper to keep on Cap 1 than transferring to Virgin?

ziknik

Rough Calcs

If you transfer to Virgin: You are going to pay approx £40 on the balance transfer fee and virtually no interest. Let’s call it £45

If you stick with CapOne, you are going to pay around £19 per month in interest for 3 months. Let’s call it £60

sarahs999 wrote: »

…
I suppose I need to know when do I need to have paid off the 1,353 to make it cheaper to keep on Cap 1 than transferring to Virgin?

Around 2 months

sarahs999

Thanks very much. Maths was never my strong point...

td_007

sarahs999 wrote: »

II realise that it depends how quickly I can pay it off so I suppose I need to know when do I need to have paid off the 1,353 to make it cheaper to keep on Cap 1 than transferring to Virgin?

Is that 0.9% monthly or annual?

On the Cap1 card you will paying ~£20 in interest each month (for next 3-4 months). On the Virgin you will pay ~£40 as BT fees plus ~£12 (0.9% monthly) or £1 (0.9% annual) each month (for the next 3-4 months).

Thus total interest you will pay at end of each month (approx)

Month1 - £20 (abbey)...£52 (cap1-0.9%monthly).....£51(cap-0.9% anual)
Month 2 - £40.................£64..............................£52
Month 3 - £60.................£76..............................£53
Month 4 - £80.................£88..............................£53

sarahs999

It's 0.9% pa.

Thanks