0% balance transfer rate. Should I act on it?

Ally1205

Thanks for any advice here. Nine months ago, I was sent a 0% balance transfer rate by one of my three CC providers who are inclined to make such offers. I was about £10K in debt so I accepted the deal. The deal was to run for 12 months. Nine months later (i.e., a week ago), one of my other CC providers sent me another 0% for 12 months offer. I only have 3 CC providers that tend to make these offers: Halifax, CapitalOne and MBNA. If I accept the current offer, I will lose out on the final 3 months of the existing offer. However, I may not get another 0% offer in the near future, in which case, my loan might well have to go onto the CC's 'normal' rate, which is something silly like 25% pa. Should I therefore accept the new 0% offer and sacrifice the remaining 3 months of the present deal?

If this keeps happening, it could work out expensive, because every time I make a balance transfer, it costs me a 3% admin charge. This method of managing my £9K debt is about the only option available to me right now. I'm currently unemployed, so a bank loan or mortgage on my house is out of the question. I could take out a lifetime (equity release) mortgage on the house, but I would only do that as a last resort.
Many thanks...

Ben8282

Based on what you have said above, suggest you accept the new transfer offer.

chattychappy

Agree with Ben. But I would consider trying my luck by applying for a new card first.

accountingbod

i would accept the new deal but only transfer over whatever it is that you could not pay off the old one.
So for example, if you had 9k of debt and thought you could pay off £150 pounds on the old card and transfer £8850 instead then you would be charged a lower fee on moving the money eg. 3% @ £150 = £4.50. Obviously not a lot of money but if you could pay more then higher savings!
I would take it up in your position, but only transfer what i couldn't afford to pay off before the final three months is up (bearing in mind there would be two card payments for 3 months). Also, be sure you can clear what you haven't transferred as it will incur interest after 3 months.

bouncydog1

BTs usually have a pericocd of a few weeks. I would wait until five days before the end of the offer to do it and do online. That way u should get an extra month or so on existing card.

Ally1205

Thanks to all for the replies. Bouncyd!!!: was "pericocd" a typo? I didn't understand your reply.

Shelldean

think bouncy dog was trying to type period.
As in most BT offers last for a certain period. Do the transfer at the latest possible date

Degenerate

Ally1205 wrote: »

Should I therefore accept the new 0% offer and sacrifice the remaining 3 months of the present deal?

Yes.

If this keeps happening, it could work out expensive, because every time I make a balance transfer, it costs me a 3% admin charge.

Still much, much cheaper than paying full-whack interest.

chattychappy wrote: »

Agree with Ben. But I would consider trying my luck by applying for a new card first.

I wouldn't, considering the fact that OP is currently unemployed.

bouncyd!!! wrote: »

BTs usually have a pericocd of a few weeks. I would wait until five days before the end of the offer to do it and do online. That way u should get an extra month or so on existing card.

Unlikely to make any difference as in my experience these existing customer offers usually terminate on a fixed date.

chattychappy

Degenerate wrote: »

I wouldn't, considering the fact that OP is currently unemployed..

Yep. Missed that.