What do you guys and gals think?

loubie_lou

Hey guys and gals,

This is just a thought...I've not done anything about this but I was wondering what you guys thought about it? I have a egg card balance of £0 and the rate has been dropped to 9.9%. I have an egg loan, balance £3200 apr 14.9% and an overdraft with barclays apr 14.9% ish.

I was wondering if i should balance transfer the overdraft and loan onto the egg card because of its lower apr. Will it work out cheaper in the long run do you think?

Thanks

Loubie :money:

frugglewump

The main sticking point is : Can you trust Egg to keep the apr at 9.9% ?

Taking some random figures - say you were paying £100/month to the £3200 loan (I know you probably won't be but it's a nice round number).

Keeping it at 14.9% would have it paid off in Feb 2010.

Transfering it to 9.9%, even with the £64 BT fee (assuming egg card not egg money) would have it paid off in Oct 2009. So you're saving 3 months interest.

loubie_lou

Thats a good point frugglewump! I was thinking of keeping it like this for maybe a year and I have a a good credit rating at the mo so i could get a life of balance card. All hypothetical at the mo of course!

frugglewump

Just thought of something else. I would be tempted to put the overdraft on there as long as two things are true:

- the O/D won't be taken away for not using it
- you won't go back into the O/D

My reasoning is that if the O/D facility isn't taken away and Egg change their mind then you have the money to pay it off.

(Hmm - almost looks like stoozing!)

loubie_lou

No the overdraft will be closed as soon as its transferredas i'm not using it!

Thanks:j

climbgirl

Can you balance transfer a loan and an overdraft onto that credit card though? I thought the only way to balance transfer a non-credit card debt to a low APR credit card was through a super-balance transfer.....

frugglewump

climbgirl wrote:

Can you balance transfer a loan and an overdraft onto that credit card though? I thought the only way to balance transfer a non-credit card debt to a low APR credit card was through a super-balance transfer.....

Egg allow SBTs. I transfered my overdraft onto my egg card for 5 months at 0% every year from 2003-05. Never managed to pay it all off, but the 0% was useful. I only stopped this year because of the 2.5% uncapped fee.

kessik

Loubie,
Did you just find out today from egg that your card rate was 9.9% cos I just found out today from them that 'some people' (including me) were having their rate increased from 14.9% to 19.9%. I'm hacked off about this but it's an incentive to pay it off now.

kessik

loubie_lou

Yeah got an email this morning. I hardly use the thing to tell you the truth.

kessik

I won't be using mine now either!

dinkylou

Just a thought but you might want to check if there are any early repayment fees for the egg loan. Am assuming that these would apply with a BT and also would the 9.9% be on a BT and not just purchases. ie check the small print!!