VERY naive question

2catsandcounting

I'm sorry about the naivety of my question...

I currently have a Barclaycard intial credit card, with a £2500 limit on it, and a balance of around £900. I'm not in a position to pay it off completely, so interest is racking up

Barclaycard have however sent me an offer of 0% interest money transfer up until next October.

is there anything stopping me transferring £900 into my bank account, waiting a couple of days, and paying off £900 off my credit card, would this make the remaining balance 0%? or would the £900 pay off what i had just transferred? I thought i read somewhere that any money you pay off loans/credit cards has to go towards the most expensive debt...

i have a poor credit rating so unable to get a credit card with a 0% balance transfer to cover it.

thanks!

sammyjammy

Not naive at all, you are correct it will repay the debt that you have already accrued first leaving you to repay the balance transfer

Sam

2catsandcounting

thanks! wish i'd had this brain wave sooner, will save me a few £100 in interest over the next year or so!

meer53

If you already have a debit balance of £900, then you make a cash transfer to your bank account of £900, you then have a debit balance of £1800. What is the point in what you're suggesting ? Surely you'll only get 0% on the money transfer ? Your remaining balance will still be at the original rate ?

PeacefulWaters

meer53 wrote: »

If you already have a debit balance of £900, then you make a cash transfer to your bank account of £900, you then have a debit balance of £1800. What is the point in what you're suggesting ? Surely you'll only get 0% on the money transfer ? Your remaining balance will still be at the original rate ?

But the original £900 would be repaid by the 0% £900 transferred to the current account.

Check the T&Cs carefully. You might need to wait until the statement is issued showing the £1,800 balance before repaying the £900.

Aquamania

meer53 wrote: »

If you already have a debit balance of £900, then you make a cash transfer to your bank account of £900, you then have a debit balance of £1800. What is the point in what you're suggesting ? Surely you'll only get 0% on the money transfer ? Your remaining balance will still be at the original rate ?

This

2catsandcounting wrote: »

... I thought i read somewhere that any money you pay off loans/credit cards has to go towards the most expensive debt...

So OP has current debt of £900 @ say 20%

OP borrows another £900 @ 0% (money transfer)

This as you say makes their total debt £1800

But they then use the £900 borrowed under money transfer to partly pay off their credit card.

That brings their debt back down to £900

But because "any money you pay off loans/credit cards has to go towards the most expensive debt" that pays off the £900 @ 20%

Meaning the £900 now remaining is at 0%

(What is not mentioned is the money transfer fee, a one off fee typically about 3%. But a resultant saving if it's going to take 15 months to repay. But perhaps not a saving if the October the OP refers to is October 2016. )

meer53

Ah i see, thanks peeps.

dranzer01

2catsandcounting wrote: »

I'm sorry about the naivety of my question...

I currently have a Barclaycard intial credit card, with a £2500 limit on it, and a balance of around £900. I'm not in a position to pay it off completely, so interest is racking up

Barclaycard have however sent me an offer of 0% interest money transfer up until next October.

is there anything stopping me transferring £900 into my bank account, waiting a couple of days, and paying off £900 off my credit card, would this make the remaining balance 0%? or would the £900 pay off what i had just transferred? I thought i read somewhere that any money you pay off loans/credit cards has to go towards the most expensive debt...

i have a poor credit rating so unable to get a credit card with a 0% balance transfer to cover it.

thanks!

you have a poor credit rating with a barclay card credit card with a limit of £2,500... wish I had that -

2catsandcounting

Aquamania wrote: »

This



So OP has current debt of £900 @ say 20%

OP borrows another £900 @ 0% (money transfer)

This as you say makes their total debt £1800

But they then use the £900 borrowed under money transfer to partly pay off their credit card.

That brings their debt back down to £900

But because "any money you pay off loans/credit cards has to go towards the most expensive debt" that pays off the £900 @ 20%

Meaning the £900 now remaining is at 0%

(What is not mentioned is the money transfer fee, a one off fee typically about 3%. But a resultant saving if it's going to take 15 months to repay. But perhaps not a saving if the October the OP refers to is October 2016. )

I should have been clear, its 0% until end of October 2017, i'm currently paying 28% interest, and the fee is 2.9% so works out as saving around £300 over the next 15 months.

I'll have a read of the T&Cs carefully before i make a payment, luckily i've asked for the money to be paid into my second current account so i can resist not spending it, as i don't keep that card in purse, nor do i know the pin code and its not set up on apple pay.