Money Transfer to Clear Credit Card

Amberama

Hi all, I have some credit card debt and I'm paying interest on it, but I have an offer on the same credit card for a money transfer and I wonder if I can use it to remove interest from my card. Let me explain!

I have £4500 in my bank account, some of which I need over the month ahead, so I can't just clear the card right now.

I have £4200 debt on my credit card am paying £75 interest a month, and I have a years interest free money transfer on the same card. (5% fee)

The plan would be to pay off the credit card from my bank account, taking my bank balance down to £300, then do a money transfer from the same credit card to my bank account, taking it back up to near the £4500 mark, and leaving me with interest free debt on the card.

Is there a risk involved? Is it possible that I could be left with an empty bank account and be refused the money transfer (I can't think why though).

Thanks for your help as always!

[Deleted User]

There's a small risk they'll decrease your limit once you've cleared the balance, but unlikely.

Tixy

What is the limit on the credit card?
If high enough you could do the transfer first, to remove the small element of risk.

thebritishbloke

You said that you need some of your £4,500 bank balance this month. If you don't need all of it, don't incur yourself extra fees and owe more money just because you can. Just pay off the debt and borrow back from the card what you actually have to spend this month. If you could wait until your next payday and clear the card now, do that.

Amberama

Thanks all.

In the end I chickened out a bit and used another empty card to do a 0% BT. It's only half the amount (£2300), but it reduces my interest a lot. The outstanding £2k will be my target to clear ASAP. Not quite the ideal complete removal of interest, but pretty good.