Pay off credit card with money transfer from same card?

Terry_Towelling

Assuming you are already revolving your balance and therefore already incurring interest on the debt, I reckon you'd stand to save £80 over the 6 months.

You've stated that you can pay the debt in 6 months. At 0%, a debt of £1030 (this includes the transfer fee) would cost you approx. £172 per month to clear.

If you let things stay as they are, with the current rate of 35% APR and pay the same £172 for 6 months, you'd have about £80 left to pay at the end.

There is another way - it's called stoozing. Do the MT and only pay the minimum each month for the promotional period. At the same time open a Regular Saver (paying, say 2.5%) and add to that the difference between £172 and your minimum payment.

At the end of 6 months your card debt would then be about £970 but you'd have around £979 in your RS account. As long as this is an easy-access RS account, you could withdraw and repay the remaining card debt and have an extra £9 saving.

Big deal, I hear you all cry, and, yes, it probably isn't worth the effort/risk for an extra £9. You have to find your own 'tipping point' where savings are concerned. I'd probably agree that an £80 saving was a good amount, but the extra £9 may not be worth it - except to perhaps get you into the habit of saving.

Brave321

Thanks very much for all the replies and advice very helpful

Stoozing thing for extra £9 not sure of, but good information for future, never heard of that before.

Gonna do the money transfer, not a huge saving, but better in my pocket than theirs

I'm seeing a gradual improvement in credit rating over the past 6 months, lets hope it continues

Thanks again,

B

surreysaver

Don't do Stoozing unless you are not in debt.

Are you sure that debts on your Aqua Card are paid off in the order of the most expensive first? I.e. if you take the £1k money transfer, then pay it back, it will definitely pay off the original debt first? You may also wish to try and pay more than £1k back along with the money you've transferred in order to cover the interest that will still appear in the first statement following the money transfer

[Deleted User]

surreysaver wrote: »

Are you sure that debts on your Aqua Card are paid off in the order of the most expensive first? I.e. if you take the £1k money transfer, then pay it back, it will definitely pay off the original debt first?

All cards will do this.