Help with best way to clear debt

Angels65

Hi I have a credit card which now has an interest rate of 1.4495% I have a balance of £944.57 on it. I have £450 to use on it an am not sure whether to transfer to a zero interest card first then pay off or pay off then transfer. Was looking at applying for the fluid card shown in the deals did the test 90% chance of getting it. Transfer rate 0.75%. I am not mathmatically minded and im struggling to work out which will be the most cost benifical. Any help gratefully recieved. Thanks in advance

Fruit_and_Nut_Case

Angels65 wrote: »

Hi I have a credit card which now has an interest rate of 1.4495% I have a balance of £944.57 on it. I have £450 to use on it an am not sure whether to transfer to a zero interest card first then pay off or pay off then transfer. Was looking at applying for the fluid card shown in the deals did the test 90% chance of getting it. Transfer rate 0.75%. I am not mathmatically minded and im struggling to work out which will be the most cost benifical. Any help gratefully recieved. Thanks in advance

Welcome to MSE :wave:

Presumably the 1.4495% is the monthly rate, not the APR.

Why would you want to pay it off first, then transfer? Surely if you pay it off there would be nothing left to transfer or have I misunderstood?

planteria

that is what i thought.
if you can afford to pay it off, then pay it off.
if you can't, then, if you can, transfer it to a new card with a 0% Balance Transfer deal.

YorkshireBoy

Fruit_and_Nut_Case wrote: »

Why would you want to pay it off first, then transfer? Surely if you pay it off there would be nothing left to transfer or have I misunderstood?

I read it as having a £944 debt and only £450 available to reduce it?


If that's correct, there was a similar thread recently which the OP might benefit from reading...


https://forums.moneysavingexpert.com/discussion/4852927

suesie999

Just taken out the halifax offer of 0% on purchases and balance transfers both for 15 months. Intend to keep what I spend on purchases in a 3% savings account ,but could do with doing a £400 bal trans on same basis. The fee on the £400 will equate to 0.8% . They assure me the fee is also at 0% , so without sounding blonde I am ok to do this and not incur any interest? Its just I did this once before on a mint card and for some reason got charged??

YorkshireBoy

suesie999 wrote: »

They assure me the fee is also at 0% , so without sounding blonde I am ok to do this and not incur any interest?

Yes.........

Fruit_and_Nut_Case

YorkshireBoy wrote: »

I read it as having a £944 debt and only £450 available to reduce it?

That would make sense. I read it as the OP being able to spend £450 more before hitting his/her credit limit.

Angels65

Hi Sorry if I wasn't clear, I have £944 on card and £450 to cash that I can use to pay some of it off. Wanted to know whether it would work out cheapest to transfer to a new 0% card before paying the £450 off it or pay off the £450 to bring the balance down to £494 before transferring it to the other card. I'm thinking of the transfer fee and the interest which will be more if that makes sense plan on doing this asap as soonas the cheques clear. Think the interest in monthly not apr not sure the card was on 15 month 0% interest but didnt manage to pay off in time due to other stuff going wrong as usual.

Thanks again

planteria

Fruit_and_Nut_Case wrote: »

That would make sense. I read it as the OP being able to spend £450 more before hitting his/her credit limit.

that is how i read it too.