Credit Cards 'Time to pay back'

denispage

I have been looking for a new 0% credit card.All the companies give the 0% introductory period ,I understand this.They also give a 'Time to pay back 'period .this is usually shorter than the introductory period .I  do not understand what they mean by' time to pay back'.I phoned one company and the girl either did not understand my question or did not know the answer.Is this a new trick to catch out unwary   people ?

Ebe_Scrooge

Not quite sure I understand - can you give us a link to a website that shows what you mean?

Very often you'll see something along the lines of "24 months 0% on all purchases (or transfers) made during the first 90 days".  Is this what you mean?

noh

Ebe_Scrooge said:

Not quite sure I understand - can you give us a link to a website that shows what you mean?

Very often you'll see something along the lines of "24 months 0% on all purchases (or transfers) made during the first 90 days".  Is this what you mean?

Example here https://moneyfacts.co.uk/credit-cards/balance-transfer-credit-cards/

Time to payback in last column.

JGB1955

noh said:

Ebe_Scrooge said:

Not quite sure I understand - can you give us a link to a website that shows what you mean?

Very often you'll see something along the lines of "24 months 0% on all purchases (or transfers) made during the first 90 days".  Is this what you mean?

Example here https://moneyfacts.co.uk/credit-cards/balance-transfer-credit-cards/

Time to payback in last column.

It's telling you how long it would take to pay back the £5,000 at £150 per month.  If you change the '£150' to £250, the payback time goes down to 20 months.  It's just for illustrative purposes....

Ebe_Scrooge

Thanks both, makes perfect sense.  Just hope the OP comes back to read this

To the OP, based on the above information, the key thing is to make sure you set your monthly payment at such a level that the whole amount is repaid by the time the 0% promotional rate comes to an end.  If you have a balance remaining when the promotion finishes then you'll start paying interest at the card's standard rate - with no guarantee that you'll be able to do another balance transfer to somewhere else.