Barclaycard life of balance advice

Stoneman_2

I have a few cards that I'm continually tarting from one 0% offer to another 0% offer every few months to keep them all at 0%.

Although I am paying a fair chunk off each month, the balance transfer fees every few months is not helping.

I do have part of the debt on a barclaycard at 6.9% life of balance so am paying some interest and have the opportunity to shift some more debt onto it.

I'm considering trying to get as much of my debt as possible on 6.9% to avoid paying fees all the time and was wondering if that was good logic.

I know that I will be paying interest (which I wouldn't do if I stayed with 0%) but was wondering if it makes sense.

I know that I could work out if the one off fee and interest that I will be paying for the life of the balance is going to be less that continually paying fees every year, but was wondering if it's a good idea anyway. I'm unlikely to pay it all off anytime soon, so am looking at a long term solution.

Any advice would be appreciated

YorkshireBoy

I'm willing to bet paying a 2-3% fee for 2 years plus 0% is much cheaper than paying 6.9% APR LOB, even though the 6.9% is payable on a reduced debt as time goes by.


However, what if 0% deals dry up?...6.9% APR is always going to be cheaper than lenders' representative rates.


So it really boils down to whether you want the surety of a LOB or are happy to take your chances with future 0% deals.

Stoneman_2

I seem to get offers every few months, so that isn't a worry to me at the moment, but I'm guess that I am looking for the surety of it as you mentioned.

I have done some quick maths and on the £2k I am considering transferring at 6.9%, I would be paying around £150 per year interest as opposed to no interest if I stick with 0% offers! but will incur £60 fees each time I shift the debt. So that's a £90 a year difference.

There is off course the one off fee to consider, but the £90 equates to around £8 a month just for the peace of mind that the rate is for life and it will be going down a lot quicker as knowing that I'm paying interest might tempt me to pay it off quicker as I have had the debt for more years than I care to mention :mad:

YorkshireBoy

You seem to be only considering offers from existing card providers.


Is this because you feel it unlikely you'll be able to secure cards from new providers?...because at the moment you can get 2.5 years 0% for your circa 3% fee, and that could double the cost of your "surety".

Stoneman_2

I already have cards from the providers that are offering the 30+month deals so that isn't an option.

I do check to see if any providers that I don't already hold cards for are making those long 0% offers, but the cards I have are all from the main players ( barclaycard Tesco, Natwest etc)

Due to the fact that I have so many cards, I wouldn't want to risk try to getting anymore.