Balance transfer, or pay off card with investments?

I wish to stooze and put the money into HL funds, which I can sell anytime and have in my bank account within a week.

Would it be entirely practicable to, when the 0% period expires to sell the investments, pay off the card, and begin again with the next card? The object here would be to avoid the balance transfer fee.

Replies

  • NednatsNednats Forumite
    330 Posts
    Part of the Furniture 100 Posts Combo Breaker
    It depends on the cost of the transfer fee and how much you are getting from the investment.
    Cash I have stoozed is currently receiving 3% in an ISA. If did a Balance transfer and there was 1% fee. I'd still be earning 2% on the debt off the orginal card.
  • ChopperSTChopperST Forumite
    1.3K Posts
    Tenth Anniversary 1,000 Posts Name Dropper
    High risk strategy stoozing to invest as opposed to saving.

    What happens if your investments tank 20% and you owe more on the card than you have in equities? You are effectively borrowing to invest which never ends well.

    You are avoiding a BT fee but will be paying dealing fees and HL £2 monthly platform fee.

    Its your money, you takes your chance.

    The other thing is if you do cash in an investment to pay the card and the investment has gained significantly you'll be kicking yourself for selling and missing the compound interest over the years to come.

    What sort of amounts are we talking?
  • Would it be entirely practicable to, when the 0% period expires to sell the investments, pay off the card, and begin again with the next card? The object here would be to avoid the balance transfer fee.

    I would have thought the transaction costs of this would outweigh the possible savings.

    I also don't think you should borrow money, even at 0% interest, to invest on the stock market. Way too risky.
  • ohitohit Forumite
    370 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Also, think of potential tax implications if you sell the investments for a profit.
  • ohit wrote: »
    Also, think of potential tax implications if you sell the investments for a profit.

    I think you can ignore these. After all, everyone has a Capital Gains Tax allowance of £11k in 2104/5 so you are unlikely to exceed that! And if the investments are in an ISA there is never any CGT.
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