Is it worth moving to Egg?

sghughes42

I currently have around £300 on a NPBS card on which the 0% offer has run out. I am able to repay this at around £100 a month if I work hard, maybe a little less otherwise.

Egg are currently offering me 3.9% on BTs with a 1.5% fee.

Now, I could apply for another 0% deal but many of these seem to have fees higher than 1.5% and it would also take (based on past experience) 6-8 weeks before I got the card and the money was moved.

Therefore, I'm wondering how to calculate how the Egg deal stacks up against either keeping the money in NPBS (where I think the rate is around 16%) or applying for another 0% deal. I'm not sure how to accurately compare interest rates over a fairly short period, so am not sure where to start in working out whether I'd save more than the £4.50 Egg would charge me to transfer the balance over.

TIA!!!

[Deleted User]

Any cost or saving is likely to be so small as to be not worth the bother. You'll have cleared your debt in 3 months and will pay less than a tenner in interest. Stay as you are would be my advice.

swayze

When you take the fee into account I would say its probably not worth it. The savings will be small if at all.

Although my mother always did say look after the pennies and the pounds will look afther themselves.

thumshie

Well, my maths showed it at £1.55 saving over 3 months..

basically i took 3 months balances of 300,200,100 for simplicity and multiplied by the APR/12.
Add these 3 values to get the interest charge over 3 months(not compounded i know)..
And add £4.5 to the egg value.
EGG:0.975+0.65++0.325+4.5=6.45
NPBS:4+2.666+1.333 =8


edit,
or you could use http://www.whatsthecost.com/snowball.aspx but just put in one debt(a.k.a credit card offering 3.9%/16%) at a time, it'll show you what the interest is based on repayments of x a month, if you wish to compare over 4,5,6,7 months - remembering to add £4.5 to the egg one...