0% Balance Transfer Advice

LorettaSilas

I have a Tesco Clubcard Credit Card. Barclaycard are offering me a zero percent balance transfer. However, when I calculate the minimum payment with Barclaycard based on 2.25% of the balance (I think - it's very difficult to find out what the repayment percentage is on their website - I found this info on a MSE forum), it works out that I'll be paying more per month than I'm currently paying to the Tesco card. Does that sound right?! I know I'll be paying off the debt and not paying interest, but TBH I'm looking at reducing my monthly expenditure so in the short-term this won't necessarily help. But I'm guessing it's still best to transfer because the debt will be paid off more quickly....? Any advice/further info gratefully received.

Cornucopia

Yes, it's possible that the minimum payment will vary between cards.

It's one of those six-of-one, half-a-dozen-of-another things. If you really want to exploit a 0% deal, you'd obviously want to keep it going for as long as possible (depending to an extent on why you have it). On the other hand, it's a good plan to be paying it off.

In the end it should all work out exactly the same, anyway, if they are both 0% deals. If you are comparing an existing card that charges, then you need to compare the existing charge rate (say, 19% APR) against the transfer fee (say, 3%). Usually, like those example figures, there is no comparison, and the 0% deal is cheaper.

grumbler

LorettaSilas wrote: »

...However, when I calculate the minimum payment with Barclaycard based on 2.25% of the balance (I think - it's very difficult to find out what the repayment percentage is on their website - I found this info on a MSE forum),

It's in the Summary Boxes of all their Credit cards (click "Find out more")

it works out that I'll be paying more per month than I'm currently paying to the Tesco card. Does that sound right?! I know I'll be paying off the debt and not paying interest, but TBH I'm looking at reducing my monthly expenditure so in the short-term this won't necessarily help.

• Danger! Min Repayments

But I'm guessing it's still best to transfer because the debt will be paid off more quickly....?

Absolutely.