0% cash transfer advice

PayingItOff2022

Hi all first post, I need some help! I have a card with Lloyd's and it's 0% ends in 6 months leaving me a balance of £2000 I couldn't get cleared. They have offered me a 0% cash transfer for 12 months on the same card, my question is: Can I do a cash transfer, pay it straight back on my card and then benefit from the year to pay the remaining balance?

Ebe_Scrooge

In theory, yes.  There's likely to be a fee imposed, so you need to factor this into your calculations.

You just need to be careful of the timings.  Any payments will get allocated to the highest-rate debt first.  So if you do the MT now, then wait until your existing 0% debt starts to attract interest, then pay it off - your payment will go towards the interest-bearing debt.

But you say your existing 0% rate ends in 6 months.  Check the T&C's carefully.  If you have two 0% deals running concurrently, some cards will prioritise payments to the deal which ends first, some will prioritise the one that started first (which may in practice be the same thing, but not always).

So yes, it's fine in theory, but just make sure you understand where any payments will be allocated.