The final step....

Imelda

Hi all,
I joined in March this year, I had wracked up £6,670 in debt in 6 months and came looking for advice. Everyone has been so helpful and coming on these boards has really helped me focus on my budget and to generally be more organised (for me planning ahead is key). I got a bonus from work and was able to pay off most of my debts and save up towards a course I am starting this autumn (the course is a huge financial investment £7000 over two years but it is something I really want to do and has good career prospects). Due to this course and my best friend's wedding later this year (abroad, it will cost me £700 to go, but I really really want to go) I think the final £1955.58 is going to be a toughie. I am going to balance transfer this on to another 0% card (I think the Post office has one on 0% for 6 months with no BT fees, anyone know of any others?) I am not sure what's best, 6 months with no fee (and possibly have to BT at the end of the promotional period if they're still around) or 12 months 0% with a fee? Can anyone help me out with this? I have budgeted a minimum payment of £60/ month and £70/ month (plus any extras from saving/ earning in other areas) into savings to pay off the final balance in January.

CLAPTON

assuming you can clear the card after a year

then if you are confident that you can BT to 0% card after 6 months then go for the 0% for six months as you will pay no interest or charges at all for the year.

if you're not sure you will be able to BT to a new 0% after six months then it depends upon the interst rate you have pay after 6 months and the likely balance .
this you compare with the 2% BT charge for a years 0% interest rate i.e. £39 approx.

i'ld be risk adverse and go for the full year at 0% and pay the 2% fee.

Imelda

Thanks Clapton,
Do you know if they charge interest on the BT fee? According to my projected figures (I have become an excel geek) i should be able to comfortably pay the card off in 12 months (I should get another bonus next year which will cover the deficit).

CLAPTON

not sure without reading your cards specific T&Cs but say the rate was 15% APR that would only be about £6 for the year (15% of £39 approx).

Imelda

Thanks Clapton, I just wanted to make sure I costed it all out correctly (I am going to go for the Halifax one card and having read their T&Cs I think that Ithe case).