0% cash transfer from credit card

delgirl23

If you are offered a 0% for 12 cash transfer from your credit card into your current account.  Can you then use this money to pay a lump sum onto your credit card balance leaving the amount that is left at the 0% rate for 12 therefore paying no interest on the balance example:

balance currently on credit card £3000 at 24% (credit card limit £8000)
offer of transer £3000 into current account at 0% for 12 months (fee £150 thats ok)

then pay £3000 off the same credit card leaving £3000 owing.  Will this balance be at the 0% you have just signed up for???

Nasqueron

Unless your card is unusual, they should apply any payments to the interest bearing debt first so yes, if you had a normal card with a 12 month 0% MT deal, then the cash can be used to pay the card and it should pay off the balance leaving you with £3150 on 0% to pay off

Brie

Do you have about £7k credit available on your card?  As in the total you could use?  If so then yes MT the £3k which brings the balance up to £6150 and then pay the £3k back on to the card leaving just the 0%.  Check your T&Cs as to the payment hierarchy.  Should be highest interest balance first and then working it's way down.

If you don't have £7k but have say £5k credit then do it £1k at a time.  Net result will be the same.

Stating the obvious - ensure you have your DD set up for minimal balance and have a plan to pay off the lot at the end of the 12 months.

And then look at your budget to see how to better manage debt.  Stoozing is great, I've taken great advantage with it over the years but getting rid of the debt completely is much more satisfying.