New deal on Existing 0% Balance Transfer Card

JCs4ITnow

6 months into my 0% deal with Halifax and they have offered me another 21 months 0%! And a Money tranfer deal too.
Correct me if I'm wrong, the way this works is that they are hoping I look at the overall balance and think I have 21 months to pay it off, thus reducing the monthly payment by just enough that the current deal doesn't get paid up in time. Then they land me with the 25% interest charges. (Worked out it would take me 5 months to pay off £250 with £100 a month payments) .And then I have to pay off the rest too...

shortcrust

They hope you'll borrow more and they hope you don't pay it back before the 0% ends. I only make the minimum payments on my 0% cards and pay the whole lot off with a lump sum just before the rate hike. Better to have the money in my bank earning a bit of interest.

I'm not sure what you mean about the £250 taking five months to pay at £100 a month. Are you thinking it's 25% per month rather than per year? You'd pay it off in three months. The total interest would be about £10 so two payments of £100 and a final one of around £60.

jonesMUFCforever

Yes I agree - personally if you are a good credit risk with Halifax then you should be able to get a new credit card with another lender to keep things seperate.

fozmcfc

MBNA do this.

Where you have to be careful, is that your payments don't start going towards the second 0% deal first.

So unless you pay off both balances, by the first balance transfer end date, you end up paying interest on it from when it was due to expire.