Which offer do I go for?

drunkalarm

Hi,

Im struggling to decide what offer would be the best to go with...

I have a balance of £300 on my Abbey card at 12% APR.

This is what Barclaycard have offered me:

• 0% per annum until January 2010, subject to a handling fee of 2.5%.
• 24.90% per annum until repaid in full, handling fee does not apply.
• 6.9% per annum until repaid in full, subject to a handling fee of 2.5%.

I can only really afford to pay £30 a month off the debt.

What do you think would be the best one to go with? Or should I stay where I am?

Thanks,

Lee

Ritchie74

What interest rate will the 0% revert to?
It will take you 10 months to pay off in full (assuming no further spend*) and an additional transfer fee of £7.50. Meaning you will only have to pay interest for 4 months post introductory period.

* reccommend that if you do wish to continue spending on CC then to do so on your existing card @12% as interest will accrue on your new card until BT has been paid in full - costing a lot more in the long run

drunkalarm

Hi Ritchie74,

Thanks for the reply.

The rate will revert to 24.9%

No further spending will be done on the Barclaycard (I cut it up! hehe)

Lee

stephane_2

WHich Barclaycard is it? As far as I know Barclaycard has a platinum at 6.9%, then the Barclaycard Initial at 27.9%, I don't think they have a card jumping from 0% to 24.9%!!!
Have they not just told you what kind of card you can potentially apply for?

Ritchie74

Based on the rates in original post, option 1 is your cheapest option and will cost c.£7 in interest and £7.50 in BT fee.

Just did some rough and ready calcs, if anyone can give exact figures please do (not at a comp so can't use online calculators).

drunkalarm

Its a student/ graduate card that Ive had for about 3/4 years so the rate wont be the same as the new options out there.

Thanks all for your feedback :j

CannyJock

If you leave it with Abbey at 12% it'll be:



If you go for option 1, 0% till January with 2.5% fee, it'll be:



Option 2 isn't worth considering

Option 3, 6.9% LOB with 2.5% fee will be:



Not a huge amount between 1 and 3 but both will save you.

I'd be holding onto the Abbey card after the BT, 12% isn't a bad rate.

drunkalarm

Thanks Canny Jock - I'll give them a call tomorrow

YorkshireBoy

Is the Abbey card administered by MBNA, ie not yet migrated to Santander Cards Ltd? If it is I'd definitely keep it open as they're usually pretty good with offers on unused zero balance cards.

drunkalarm

No unfortunately not - Abbey migrated the card a while ago from MBNA. Although on the plus side at the time I got a 0% balance transfer on the new MBNA card I applied for :j

I've now cancelled the MBNA - hoping to re-apply at a later date for another 0% as and when I need it...