Shifting 0% debt before the existing deal ends

delmar39

Hi all

My current 0% deal comes to an end in October, but what with all the good long 0% balance transfer deals out there I'm considering shifting the debt early.

Does anyone have any views on this? Is it better to wait until nearer the time?

Interested in your thoughts.

Thanks

zerog

delmar39 wrote: »

Hi all

My current 0% deal comes to an end in October, but what with all the good long 0% balance transfer deals out there I'm considering shifting the debt early.

Does anyone have any views on this? Is it better to wait until nearer the time?

Interested in your thoughts.

Thanks

If I transferred 4 months before my current deals end, I'll lose money on the fee

fozmcfc

In general, I wouldn't be applying for a card until the end of August to mid September depending on what day in October the 0% runs out. I would recommend 6 weeks between applying and current 0% running out.

It could still benefit you to change now, but it will depend on how much and how long you need on a new card to pay it off.

For instance Tesco are offering 12 months at 0% with no transfer fee, if you can clear off the balance in 12 months, then I would consider that now, incase the offer ends.

However new deals are coming out all the time, so there could even be another couple of deals with 0% transfer fee offering more than 12 months, by the time your current deal finishes, it a chance you take.

If it's going to take you longer than 12 months to pay it off, then it depends how much longer.

For instance if it will take 13 or 14 months, it may be cheaper to get the 12 months 0% card and pay a couple of months interest on the outstanding balance at the end of the 12 months, then paying a balance transfer fee for the balance transferred to a 24 months + card in October.

I.E. come 12 months, you're paying a couple of months at £10 interest, but in October, the outstanding amount is higher and you're paying £100 as a balance transfer fee.

Paully232000

I would wait until a month or so before the deal ends with your current CC provider. I usually look to getting a new BT card about 4-6 weeks before the old one ends.
I would imagine that there are always going to be good deals around for the time being anyway, if you look hard enough. Like fozmcfc says the tesco one is very good (even though the transfer fee is now 0.9% not free), but still better than other cards, and the lloyds tsb one which has a 1.5% BT fee.

Herbalus

fozmcfc wrote: »

For instance Tesco are offering 12 months at 0% with no transfer fee, if you can clear off the balance in 12 months, then I would consider that now, incase the offer ends.

The offer has ended. It's now a 0.9% fee - not much, but still a pain.

fozmcfc wrote: »

However new deals are coming out all the time, so there could even be another couple of deals with 0% transfer fee offering more than 12 months, by the time your current deal finishes, it a chance you take.

True. On Monday Tesco brought out a new 27 months offer and forced Barclaycard to review their fees as their fee reduction was originally up to end of June. Then Tesco 27 months came out and later that day Barclaycard launched a new fee reduction to compete.

The market seems to be going up, so waiting could even get you a better deal.

fozmcfc

Ah, 0.9% fee now. Well that just shows how quick these things change.

Although I'm surprised Tesco changed it so quick, I would have thought they would have left it a couple of months at 0%.

adindas

Paully232000 wrote: »

the lloyds tsb one which has a 1.5% BT fee.

Any link ?
I just query this deal for existing customer. They said 1.%% BT fee is no longer available, only 3% in the current offer ?

Herbalus

http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards#lloyds21

Here are two Lloyds cards. The second has a 1% fee. This is applied as a refund from your 3% fee. Second bullet point on the lloyds website when you click on these links.

Paully232000

There you go adindas:
http://www.lloydstsb.com/credit-cards.asp

Platinum 21 Month Balance Transfer Card
"Saving - 0% interest up to the first 21 months on balances transferred within the first 90 days (3% fee)*
Balance Transfer fee refund - refunds part of a 3% fee so overall a 1.5% fee is payable."