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Using 0% money transfer to lower CC interest
MrFrugalFever
Posts: 1,301 Forumite
in Credit cards
Hi all,
I just need a sanity check...am I right in assuming that because of the way payments are allocated to a credit card the below would be correct?
example:
£3,000 owing on CC at 18.9% compound equivalent APR
0% money transfer offer for £3,000 til end of next year (2.6% transfer fee)
If I made use of the money transfer my balance would then be £6,000 + £78 in fees. If I then transferred £3,000 back on to said credit card, they would allocate it to the standard balance in which accrues 18.9% interest, thus leaving me with £3,078 at 0% interest?
thank you
I just need a sanity check...am I right in assuming that because of the way payments are allocated to a credit card the below would be correct?
example:
£3,000 owing on CC at 18.9% compound equivalent APR
0% money transfer offer for £3,000 til end of next year (2.6% transfer fee)
If I made use of the money transfer my balance would then be £6,000 + £78 in fees. If I then transferred £3,000 back on to said credit card, they would allocate it to the standard balance in which accrues 18.9% interest, thus leaving me with £3,078 at 0% interest?
thank you
If you believe you can, you will. If you believe you can't, you won't.
Secured/Unsecured loans x 1
Credit Cards x 8 (total limit £55,050)
Creation FS Retail Account x 1
Creation Credit Sale 0% x 1 = £112.50pm x 20 mths
0% Overdraft x 1 (£0 / £250)
Mortgage Outstanding - £137,707.00 (Payment 13/360)
Total Debt = £7,400 (0%APR) @ £100pm - Stoozing
Secured/Unsecured loans x 1
Credit Cards x 8 (total limit £55,050)
Creation FS Retail Account x 1
Creation Credit Sale 0% x 1 = £112.50pm x 20 mths
0% Overdraft x 1 (£0 / £250)
Mortgage Outstanding - £137,707.00 (Payment 13/360)
Total Debt = £7,400 (0%APR) @ £100pm - Stoozing
0
Comments
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Correct.0
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