to bt or not

voucher1

nat west have offered me alife time BT at 6.9% plus a 3% fee. the BT i want to do is quiet large would it be better to take a loan at 6.9%. because the actual interest charged will be higher as the retail balance is 18.9% and the 3% will be at that rate.

any advice

riad_2

If the balance on your Natwest card is zero (or you make it zero) and you don't make any additional purchases on the card (i.e. just leave the BT on there only)... then you will only pay the 6.9% pa.

I would lean towards the credit card only because it's more flexible in terms of overpaying etc... but if the 2.25% min pymnt per month required on the credit card stretches you a bit much... the loan would be better as the monthly repayments will be lower if you spread it out over a longish term.