0% balance transfer over 12 months with a 0% fee or 6.9% over 24 months with a 0% fee.

blaken120 Posts: 1 Newbie

I need some advice - I have a credit card balance I need to transfer - it will make my total balance £2,200. I can either choose to transfer the remaining £901 to my card making the balance £2,200 at 0% with a 4% fee over 12 months or I can choose to pay it off over 24 months with a 6.9% pa but no transfer fee. What is going to be the best option? 



  • Nasqueron
    Nasqueron Posts: 8,311
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    edited 2 January at 11:19AM
    You need to do the sums on it to work out the best option financially, whether 12 or 24 months is the best for you depends on you

    A £901 balance with 4% fee will be 901 * 1.04 = £937.04 or a £36.04 fee 

    I did a search and couldn't find a very good calculator but one I did find (lemon fool) suggested £901 transferred at 6.4% over 2 years seems would give about £62.87 of interest if the card was cleared over that period paying £41 a month but I wouldn't take that as guaranteed
  • Mark_d
    Mark_d Posts: 262
    First Post Name Dropper
    The 4% fee hits you regardless of how quickly you pay off the debt.  Personally I'd go for the 6.9%p.a. and be trying to pay off the debt as quickly as possible.
    If it will take you nearly a year to repay the debt then the 4% deal would be cheapest.
  • Brie
    Brie Posts: 9,251
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    What's the rest of the balance on the card you are transferring to?  If it's purchases then you will be hit with a lot of interest going forward.  If it's a previous 0% deal of some sort then none of the money you pay to the card will go on that balance if you take the 6.9% deal and then you have the potential for being hit with a large interest payment when that initial deal ends and you have a balance to pay at your standard cash advance rate.
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • fergie_
    fergie_ Posts: 154
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    As said above, the 4% charge is regardless of whether you clear the balance or not at all (followed by either another transfer or falling onto their standard rate).

    The 6.9% is obviously more expensive for a year, but would be cheaper if you can clear the balance in 6 months (effectively 3.45%). The main advantage here is you have surety if you need longer than a year to clear the balance, but it is more expensive.
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