Barclays offer me 2.9% APR for life. Conditions?

Enviomon2

I was pleased to hear this last time I contacted them on the phone, but as it was on the phone I'm completely unaware of what the terms and conditions may be, the minimum spend etc. I shoudl probably juist go and give them a call on 18866 but has anyone recived a similar offer and if so what were the terms and conditions?

The woman on the phone gave me the impression that I could borrow £1000 and only pay 0.4% in interest per month on this debt. surely I have to spend a minimum each month or pay off a percentage of the balance?

Rafter

Got offered the same deal.

There is a 2% fee (maximum £35) attached I think.

This is a good deal if you have no purchase balance, otherwise your purchases will continue to attract interest at the standard rate and your transfer balance will get paid off first.

I don't think you have to spend a minimum each month, but you do have to pay off a percentage of the balance. Depends which product you have I think, but I have to pay a minimum 2.5% or £5, which ever is the greater.

R

Enviomon2

Ok so it's

situation: I transfer a £1000 overdraft to the card

fees = £4 (0.4%/month on £1000)

+ 2% on the balance each month?? is that a fee or am I paying off the balance, ie getting rid of the debt?

Milarky

Ok so it's

situation: I transfer a £1000 overdraft to the card

fees =   £4 (0.4%/month on £1000)

+ 2% on the balance each month?? is that a fee or am I paying off the balance, ie getting rid of the debt?

Nope. You borrow £1000 but pay a 2% fee - so £1020 is owing from the start.

Simply make your 'minimum' repayments [of 2 or 2.5%] by setting up a direct debit madate from the outset - the money is taken automatically fro myour bank but you must usually make the first payment manually due to the delay in setting this up.

Then you would be charged about 0.2457% INTEREST each month [First Month about £2.51, second month about £2.46.. and so on]

I think the reason she mentioned '0.4% per month' is that the APR might have to include the 2%, and that it has to be based on the first 12 month period. You pay 2% fee plus 2.9% on the reducing balance. That's about 4.8% in effect and 4.8% divided by 12 months is then about '0.4%'

Another way to look at this is to assume no fee was levied - that you made identical payments and the balance got to the same level after 12 months. You then ask 'what rate of interest' was needed to bring the balance to the same figure - and it then works out at about '4.8%' in the FIRST year. But remember that fee is a one-off, and in the second, third, fourth years the interest rate is 2.9% pa.

This can be a good deal for a longer term rate - but remember that you only see the 'benefit' in years 2, 3 ,4 etc - In the first 12 months you are actually borrowing at nearly 5 percent - which is about 5% more than you might have to if you got a card [say] at 0% for 12 months...