Balance transfer advice

ajm71

Hi all

I'm hoping someone can answer what I'm assuming is a simple (and possibly stupid!) question, but one that's confusing me somewhat.

I have 2 credit cards. Both were taken out at a time when I was unable to get 'mainstream' cards. One is 39.9% APR and the other is 32.9% APR. The current balance on each of them is around £2500.

I have no issues making the monthly repayments of either of these cards. I've only been making the minimum payments, but this has been largely down to laziness (in not upping the payments as I could easily do). Clearly I've been lining their pockets!

I've just been accepted for a Barlcaycard Platinum, with 25 months/0% balance transfer at a fee of 3.2%.

Would it make sense to transfer the entire balance of my 2 existing cards to this Barclaycard? This balance transfer business is new to me, so - even having read the terms - I'm not 100% sure what it entails.

Thanks in advance for any advice.

stephane_2

If your credit limit with Barclaycard is large enough to accommodate the other 2 balance on your other credit cards..Then yes it's in your own interest to transfer as much as you can onto the Barclaycard....just imagine "no interest to pay for the next 25 months"....even taking into account the transfer fee for both cards, you are in a win win situation....

grumbler

Well, the maths is very simple. ATM your debt costs you 2.4%-2.8% p.m.
The transfer will cost you 3.2% one-off, then you don't pay any interest for 25 months. As simple as that. I hope you will use this opportunity to pay the debt off as you will save about £3.5K on the interest over 2 years.

ajm71

Hi, and thanks for the reply.

My Barclaycard limit does indeed exceed the balance on the 2 other cards. So I guess it's a no brainer then!

I'll get a transfer initiated right away, and finally I can close those other 2 cards.

Thanks for your advice.

Edit: thanks Grumbler - the math speaks for itself I guess!

stugers123

How did you find out your limit for the barclaycard?

ajm71

I applied (and was accepted) via Moneysupermarket.com. At the end of the process it went through signup for the 'Mybarclaycard' online servicing. The limit is displayed there.