Unclear about Virgin balance transfer card promotion

overcharged

Hi Guys

Doing this to help out a friend as I'm really confused as to what to advise her. Totally unclear about a Virgin Balance Transfer credit card promotion. Any suggestions would be truly appreciated!

Here's her dilemma:

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Months ago she managed to get a Virgin Balance Transfer credit card on which the 0% period expires in April 2018.

The max limit on the Virgin Balance Transfer credit card is £5000 and she currently has £2400 on it.

She received the following letter just last week about her Virgin Balance Transfer credit card:
"Dear ---
A new promotional rate for your Virgin Credit Card
As part of our ongoing service to you, we have introduced a new promotional rate for your Virgin Credit Card.

**0% until your July 2017 statement on all new balance transfers you make between now and 30 November 2015**
What do I need to know?
**A handling fee of 3.5% (min £3) will be applied to all balance transfers made before 30 November 2015.**
After the promotional period ends, the remaining balance returns to your standard interest rate, which you can always find on your statement."

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1. Ideally she would like her entire debt of £3900 (£2400 + £1500 = £3900) to be on the Virgin Balance Transfer credit card which she could pay off monthly at 0% until the 0% period expires in April 2018. Might this be possible?

My concern would be that the new promotion states **0% until your July 2017 statement on all new balance transfers you make between now and 30 November 2015** So, if she were to shift the £1500 of debt onto her Virgin Balance Transfer credit card, will the time she was originally allowed to pay back the debt (0% period expires in April 2018) be now reduced to July 2017? Confused!


2. Would it be cost effective for her to try to shift the £1500 (full interest) Santander credit card debt onto the Virgin Balance Transfer credit card? :question:

3. I'm conscious that she will be hit with another 3.5% fee if she tries to transfer the £1500 over, but would that be 3.5% of the £1500, or 3.5% of the entire debt on the Virgin Balance Transfer credit card (£2400 + £1500 = £3900)?

Again, any advice you can offer would be a massive help.

grumbler

overcharged wrote: »

...
Months ago she managed to get a Virgin Balance Transfer credit card on which the 0% period expires in April 2018.

...
**0% until your July 2017 statement on all new balance transfers you make between now and 30 November 2015**
...
1. Ideally she would like her entire debt of £3900 (£2400 + £1500 = £3900) to be on the Virgin Balance Transfer credit card which she could pay off monthly at 0% until the 0% period expires in April 2018. Might this be possible?

How? For this she should have transferred everything within the first 60 days. Why had she not done this? Or has she racked up new debts after 60 days?

My concern would be that the new promotion states **0% until your July 2017 statement on all new balance transfers you make between now and 30 November 2015** So, if she were to shift the £1500 of debt onto her Virgin Balance Transfer credit card, will the time she was originally allowed to pay back the debt (0% period expires in April 2018) be now reduced to July 2017? Confused!

It will be Apr 2018 for the current part of balance and Jul 2017 for the new part. The payments will go towards the new part in the first place.

2. Would it be cost effective for her to try to shift the £1500 (full interest) Santander credit card debt onto the Virgin Balance Transfer credit card? :question:

Is it a rocket science, not primary school maths? 3.5% for ~20 months is obviously much less than the 'full interest' even if you take into account that the balance drops gradually because of the payments.
Only it she is going to pay £1.5K off within the next few months it makes sense to do more accurate calculations.

3. I'm conscious that she will be hit with another 3.5% fee if she tries to transfer the £1500 over, but would that be 3.5% of the £1500, or 3.5% of the entire debt on the Virgin Balance Transfer credit card (£2400 + £1500 = £3900)?

£1500 of course.

overcharged

grumbler wrote: »

How? For this she should have transferred everything within the first 60 days. Why had she not done this? Or has she racked up new debts after 60 days?

It will be Apr 2018 for the current part of balance and Jul 2017 for the new part. The payments will go towards the new part in the first place.Is it a rocket science, not primary school maths? 3.5% for ~20 months is obviously much less than the 'full interest' even if you take into account that the balance drops gradually because of the payments.
Only it she is going to pay £1.5K off within the next few months it makes sense to do more accurate calculations.

£1500 of course.

Thanks grumbler, appreciate it.