Balance transfer calculator

Firefly

Is there somewhere that can help me compare costs for a balance transfer?

I've got an offer for a 0% deal from Virgin but there is a 5% fee so I need to work out how much I would save by transferring.

Thank you.

guesswho2000

Firefly wrote: »

Is there somewhere that can help me compare costs for a balance transfer?

I've got an offer for a 0% deal from Virgin but there is a 5% fee so I need to work out how much I would save by transferring.

Thank you.

It's very simple, using £1,000 as an example, current rate of 18.9% and balance transfer length of 12 months - standard cost would be £189, BT cost £50, you're £139 better off.

If the duration is 24 months, the annual 'cost' of the fee is essentially halved - same details as above, over two years - standard cost £378, BT cost still £50' so you're £328 better off.

The 'standard' costs would actually be slightly different than above, due to the reducing balance and compound interest, etc etc etc, but you get the idea.

MSE tool to compare some BT options - http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards#tool

StuC75

Usefull as a guide, but not completely accurate..

18.9% per annum is 1.575% per month of whatever the balance is.. so the 189 cost only applies if the balance isnt touched over the year (for which minimum payments would be paid at the least!)..

So with a one off fee of 5%, assuming the balance is going to be there for over 3 Months then you are better off with the balance transfer..

guesswho2000 wrote: »

It's very simple, using £1,000 as an example, current rate of 18.9% and balance transfer length of 12 months - standard cost would be £189, BT cost £50, you're £139 better off.

If the duration is 24 months, the annual 'cost' of the fee is essentially halved - same details as above, over two years - standard cost £378, BT cost still £50' so you're £328 better off.

The 'standard' costs would actually be slightly different than above, due to the reducing balance and compound interest, etc etc etc, but you get the idea.

MSE tool to compare some BT options - http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards#tool

grumbler

Balance Transfer Calc

Firefly

I knew I could rely on you all! Thanks.