Credit Card Balance Transfers - Which Option?

KellyT39

Hi all
Hoping someone can help me here. Trying to shift CC over to reduce payments over the next few months with being furloughed. I have an offer with 3% fee, no interest for a year then to regular interest amount of 19.9% OR no fee with 4.9% for 3 years. My balance is £4500 so I won't pay off in year so thinking the 3 years at the lower interest rate will make more sense but can't find a 'calculator' that will confirm this. Thanks in advance everyone. Hope you're all well and safe.

onlyfoolsandparking

One of the smart people on here will be able to work it out for you, I've seen it done many times unfortunately it wont be me lol but what I can say is if your certain you wont be able to pay off in a year then why put yourself under pressure trying to save a few quid in interest? Take the 4.9% deal (its not majorly expensive and not many borrow money for free) throw every spare amount of money you have at it over the next 3 years remembering of course that we are currently in a very unique situation and cash is king and you'll soon clear it.  

sasha20

The big question here is what you think your financial position will be in a year and how certain you are of that.
If you have certainty that it will be at least as good and possibly better, the 3% deal is technically cheaper and so you should take it and then switch at the 12 month mark to a different 0% deal. If you don't switch, 2 extra years at 19.9% will be more expensive in the end.

If you are uncertain and like the idea of a fixed low rate for 3 years, I'd go with the 4.9% no fee option. With the economy going down the drain, this at least gives you certainty and you're not needing to find a new deal in 12 months' time.

Willing2Learn

It is likely that you are paying 'residual' or 'trailing' interest from your previous Aqua statement.

Edit: How did the previous poster manage to delete their post?  It makes my post pointless...

KellyT39

Thanks all. Never got to see the deleted post so a bit strange so apologies willing2learn that I won't have got the gist of your comment.
I can't pay it back in a year but think it's definitely manageable over the 3 so was thinking that offer is much more viable for me rather than swapping each year (if there is an option as who knows how credit scoring and financial climate going to go for a long while yet!) to another plan and paying a fee each time. Thanks again everyone.

holidayofpayments

4500+3% (4500*1.03) = 4635. Minus your intended payment * 12 = remaining debt at end of 12 months - then to work out 19.9% its the remaining * 1.199

If over 3 and 4.5% apr.
0.375% per month interest. first interest month is 4500*1.00375= £16.86 interest per month (approx £202.32 per year)
Work it out in an excel by starting with 4516.86 then minus your intended payment.
Next month times the remaining balance by 1.00375, then take off your intended payment.
Repeat for 36 months.