Balance transfer credit card sounds too good to be true?

treeroy · 1 June 2020 at 4:36PM

In April 2019 I spent £800 on my credit card (thats my credit limit) on my year's car insurance. I couldn't afford it from my current account because I was in maxed out -£2500 overdraft.
I have been paying the monthly payments on the credit card now for 13 months and yet I still have £500 left on the card to pay off. It feels like its taking forever. I pay £60 a month but the interest is like £25 a month. I haven't been making huge payments because until recently I was trying to get out of my overdraft (i was paying the minimum £20/month, now, i've been paying 60 in the last few months)

I brought my overdraft to £0 at new year thankfully, and now I have £2500 in my current account which i have saved since new year. I know it would be a wise move to just bite the bullet and spend £500 on clearing my credit card, but I am about to buy a new car for around £2500-3000.

I have read on MSE about these balance transfer cards where for example you get £1000, pay a 2% charge of £20, and you can suddenly clear the existing credit card? Have I actually understood this right because this seems like such a no brainer and too good to be true.

By my rough man maths it's taken me 1 year to clear 3/8 of my credit card so another 1 year to clear the rest - at £20 interest a month thats over £200 in interest alone.

I have spent the last 2 years in significant debt and borrowing more debt in order to pay off debts.. my head says this is not a good idea.

MallyGirl · 1 June 2020 at 4:48PM

If you qualify for one it is a good deal but only those with decent credit history actually qualify for the good deals. Try the eligibility checker to see if you qualify

treeroy · 1 June 2020 at 4:56PM

the eligibility checker returns two offers that are 100% preapproved that have a 1% fee.

rosiesposies · 1 June 2020 at 4:59PM

If you can get it, and put the funds aside to clear it when the balance transfer offer runs out, then it is a no brainer. remember you have to make the minimum payments each month in order to keep the promotion.

rosiesposies · 1 June 2020 at 5:01PM

And make sure you dnt run up any more debt on the existing cards. if you can manage money well, many use this as a way to 0% finance purchases. but you have GOT to plan and put aside the funds somehow, other wise you are just pushing your problems down the track.