Balance Transfer or not?

Crescendo_2

I hope someone can help:

My November balance on a Capital One credit card is £1037.20
At the moment I pay the minimum payment of £31.64 – on which I pay
£9.70 Purchase Interest @ 1.240%
£4.16 Cash Withdrawal Interest @ 1.667%

My balance on my Barclaycard is £769.03 which is charged at 0.242% (it was a lifetime balance transfer a couple of years ago) I pay £35.00 per month which is double the minimum payment. So I only pay approx’ £1.86 per month.

Barclaycard have offered a Balance Transfer of 6.9% until paid off – no fee.

My question:

Is the offer from Barclaycard a good idea, and how will it affect my previous Lifetime Balance Transfer (and will it be allowed as I have already gone down this road)?

I hope this makes sense to someone because my head is in a whirl.

CLAPTON

your purchase interest on cap 1 is actually 15.9% APR and the cash withdrawal is 21.9% APR

your Barclaycard rate is only 2.94% APR

so if you are going to overpay on a CC then overpay on the one with highest APR i.e. the capital one card.
Only paying the minimum amount on the capital one card means you will be still be paying that off in 10 years time..and will have paid an awful lot of interest.
I would suggest you start paying as much as possible on the capital one to clear it down asap and obviously dont withdraw cash again.

The barcalycards offer (assuming the 6.9% is an APR and not a monthly rate ) is a good offer but you will neeed to ask them how it affects your existing arrrangments and whether you are eligible for it.

Milarky

CLAPTON wrote: »

The barclaycard's offer (assuming the 6.9% is an APR and not a monthly rate ) is a good offer but you will need to ask them how it affects your existing arrangements and whether you are eligible for it.

Generally the rule is (and they should confirm this) that payments come off the lower rate balance first. If, say, you transfer £1030 to Capital one that will make your BC balance £1800 with payments (at 2.25%?) raised to £40 - so not much more than now. These will pay down the 2.9 rate debt slightly faster than now and the 6.9 debt will only reduce thereafter. You may want make you payments about what you were paying before in total - £66 per month - but this doesn't really benefit you as I see it. Better to wait until the 2.9% is repaid and then up your payments