Should I just pay the interest?

lavagirl18

Please help!
I'm new to this...am looking for some advice. I have a credit card which has been 0% for a year and I have hacked away at it until it is now at £1700. My 0% deal is up and I asked if they would extend it but no joy. So I'm looking to transfer it to another company at 0%.

Should I pay the 2% balance transfer fee to switch (about £34) or should I just pay the interest on the card I have?

I have no idea whether the interest would be as much as £34. I am hoping to pay it off by November though as I have a bonus due from work.

Any help much appreciated
x

McSaver

Your much better off paying the 2% balance transfer on your credit card than continuing at an APR of 15.9%, it could save you around £50 by taking out a new credit card and balance transfering it over and paying it off in November.

ManAtHome

If you can get another 0%, even with the 2% charge you'd get more interest putting your bonus in a savings account (as long as you can resist the temptation to spend it...).

[Deleted User]

15.9% APR is equivalent to 1.24% per month so the break even point is about 7 weeks ie if it will take you more than 7 weeks to clear the debt you're better off balance-transferring. However remember the secondary effects eg an extra credit search on your record which may be a problem, depending on your plans for the next 12 months and the number of other searches you've had.

Karl.H_2

Yes, you're better off switching. Have you read Martin's tart guide? Some balance transfer fees are 3%.