Help with a Calculation Please 16 July 2007 at 8:47AM in Stoozing: free cash from credit cards 2 replies 932 views

bennyk

hello All,

Please could someone help me with a calculation to help me decide if this is worth going for or not.

Have a Flexible current account mortgage for circa [email protected] 6.5%

Have a halifax credit card with credit limit of 10k and they have offered me a 0% deal for 5 months with a 3% handling fee.

So, if I get 7k on the card, I will pay a £210 fee.

Will then deposit the cash in my savings account which will offset my mortage by 7k for 5 months.

How do I calculate the saving in interest on my mortage Vs the 210 handling charge to see if it is a good deal?

Thanks

YorkshireBoy

Use the www.whatsthecost.com/stoozing.aspx calculator.

Enter your gross savings rate as...

6.5% x 100/80 = 8.125% (for a basic rate tax payer) £25 loss
6.5% x 100/60 = 10.83% (for a higher rate tax payer) £38 gain

In practice, your loss would more (and your gain would be less) due to the delay in getting the cash in there - and getting it back out again to settle the debt.

bennyk

Thanks Yorkshire Boy.

Guess it does not look all that attractive now !!!

Thanks for your time though
b:D