Credit card help! which is best for me?

robynlouise

Hi!

I currently have a Barclaycard with a balance of £2500. I want to pay this off but am currently paying interest (about 18%). I want to balance transfer this but which type of card is best? Do I want 0% balance transfer, or 0% purchases? I don't plan to make anymore purchases on the card but will keep it for an emergency. If i get a 0% balance transfer card, does that just mean I don't pay the one-off fee? Or does it mean i don't pay any interest on the balance at all, just new purchases?

Hope this makes sense, thank you!

Robyn x

Candyapple

You need a balance transfer card:
http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards?&_ga=1.54186024.143331452.1457089465#halifax40

On the new BT card you take out, don't use it for anything else. Transfer the Barclaycard debt onto it, set up a direct debit for minimum payment and leave it alone.

You will pay whatever initial fee there is and then there is no interest for however long the period is.

E.g. say the BT fee is 3% and is 0% for 24 months.

You would need a credit limit of at least £2,700. Your fee would be £75. This gets added onto your total so the total debt owed would be £2575. Different card companies charge anywhere from 1% to 2% or 2.5% of the balance each month. So assuming you got one with 1%, your minimum monthly repayment would be 1% of the balance each month and no interest would be incurred on the remaining balance as long as you keep these repayments up until the end of the 0% period.

robynlouise

Thanks so much for your help.