0% 2.9% free or 5.9%

mwilde

I currently owe around £3500 on a interest free credit card that is about to expire. I want to transfer it.

What deal is better

Barclay card 0% balance transfer with 2.9% free

or

MBNA rate for life 5.9% with a 1.5% handling fee.

Im looking at paying £100 a month off the card.

Thanks in advance

Little_Vics

How long is the 0% for?

mwilde

Sorry 16 months.

jonnyb

0% with 2.9% transfer by my maths = approx. £101

5.9% deal would incur approx. £51 handling fee, then approx. £17 per month for the 16 months. even allowing for reducing interest due to payment of £100 per month, it would cost more than the 0% balance transfer.

mwilde

thank you very much

redpete

It all depends on what you think might happen after the 16 months.

After 16 months you'll be about £160 better off with the 0% deal.

If you continue to renew with 12 months or more at 0% you'll still be better off with 0%

If you can't find a 0% deal and can't pay it off then it depends on the rate you'll pay after the 16 months.

Personally I'd go for the 0% deal now.

Little_Vics

agree - take 0% now. It's possible that the life of balance deal will still be available, or you'll have another similar offer further down the line.

mwilde

Thank you everyone. The thought of it is knocking me sick. Its so easy to get into debt.

Cheers for the advice.