Balance Transfer Question

ianarbuckle

I am looking to to reduce my debt by a balance transfer on my credit card. I have bad credit but have found a 0% for 6months with a 3 % fee. My question is, if I get to the 6months and it looks like I’m not going to clear the balance, could I do a balance transfer again with the outstanding balance?

[Deleted User]

Yes, assuming you're able to get another BT card.

TadleyBaggie

Strictly speaking doing the balance transfer isn't reducing your debt, it's actually increasing it by 3%. However after that all your payments are going to reduce the debt quicker.

treenyttt

Yep, that's the way to do it. 6 months with a 3% charge is not a great offer but better than nothing I guess

Terry_Towelling

Yes, it is usually better to have debts with lower interest rates so that you can pay them down more quickly (as long as you pay a fixed amount that is more than the minimum) but I think you need to do some homework with that 3% fee - it's a lot.

How big is the balance and what is the minimum payment calculation for the new card? You mention possibly not being able to clear the balance within 6 months, so what is your monthly payment strategy during those 6 months and how does the interest rate on he new card (after 6 months) compare with your current card? You need to know this just in case you can't get another BT card.