Best way to pay off 0% card?

chelseablue

I am shortly going to be purchasing some furniture, will cost about £2,000.


I will be buying it on my cashback card and then doing a balance transfer to a 0% card.


Say I get a 40 months 0% card, is it better to pay £50 a month so its cleared by the time the deal ends or just make the minimum payment and save in an account earning interest and pay it all off when the deal ends?


Sorry if its obvious, I've never really owed a lot on a card before

Candyapple

If you wanted a 40 months BT card, you'd be looking at 4% (£80 fee) with Virgin, ranging to 2.42% (£48.40 fee) with Sainsburys.

It would make more sense to opt for a no fee BT card, such as Tesco/Halifax 24 months and then as both card companies have 1% as minimum repayment your monthly payment would only be £20. You should put the rest of the money in an interest account - probably easier to open a TSB account. TSB offer 5% on savings up to £2k and at the end of year 1, if the rates have changed, just open a new account such as Nationwide and then clear your balance at the end of the 0% period.

http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards?&_ga=1.151108477.535558150.1471943355#

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

jenifferhomes

yes i think you must opt for a no fee BT card, such as Tesco/Halifax 24 months

chelseablue

Thank you that's a great help