0% balance transfer query

kirstiex

Hi

I'm looking to transfer my £2500 credit card bill to a 0% one. I've used the 'calcuator' on martin's site and the cheapest seems to be barclaycard platinum but it says the total cost is £54 if I pay the debt over 18 months at £150 per month. I'm confused as the what the £54 cost is - I thought it was a 0% card?

Sorry if this is a dumb question - I've never transferred debt before

YorkshireBoy

Maybe its the BT fee?

0% refers only to the interest rate charged during the introductory period.

pqrdef

You don't actually pay off £150 a month, you make the minimum payment and put the difference in a savings account. Then pay off the whole balance just before the time runs out.

This gets you a certain amount of interest to set against the initial balance transfer fee.

YorkshireBoy

YorkshireBoy wrote: »

Maybe its the BT fee?

To be more specific...

£2,500 x 2.9% = £72.50

Less the £20 rebate = £52.50

A 3.2% fee (£80 on your £2,500 BT) is initially charged to your account. Within 28 days you'll then see 2 credits...£7.50 for the fee discount (from 3.2% to 2.9%) and a further £20 (for transferring more than £2,000).