Paying balance plus 0% BT

Dannii75

Can someone clarify my calculations please?
CC offering me £1396 BT on 0% for 15m.

I currently owe £2387 on the balance & am paying £100pcm (more than the minimum payment of around £60 so I can pay it off a little quicker). 

I can't see how I can pay the £1396 without paying the total off within the 15months. Is that correct?

Thank you! 

eskbanker

Not sure I'm following exactly what you're calculating from that?  In general, a 0% BT offer will be better than paying interest, but if you pay the minimum on the BT card for 15 months, while also paying the (reduced) minimum on the other one (now with a three-figure balance), what will that look like in 15 months' time?  Does the BT card have a better or worse APR than the existing one, once the 0% runs out?

Or are they perhaps one and the same card, just with an offer to BT from a notional other card?

Dannii75

eskbanker said:

Not sure I'm following exactly what you're calculating from that?  In general, a 0% BT offer will be better than paying interest, but if you pay the minimum on the BT card for 15 months, while also paying the (reduced) minimum on the other one (now with a three-figure balance), what will that look like in 15 months' time?  Does the BT card have a better or worse APR than the existing one, once the 0% runs out?

Or are they perhaps one and the same card, just with an offer to BT from a notional other card?

So sorry for having completely confused you. 

Card 1 32% has a balance of £1500

Card 2 18% has a balance of £2387 & they're offering me a BT of £1396 at 0% for 15m. 

I currently pay £100 fixed repayment on card 2.

My query is, am I correct in thinking I'd need to pay back the total for card 2 over 15 months? otherwise I'm only paying back the higher interest first & the 0% over 15m won't get paid so I'd end up paying interest on that too.

I hope that makes more sense! I'm really confusing myself with this so I'm not surprised I'm confusing you also. 

Thank you for trying to straighten this out!

MorningcoffeeIV

If you can't repay a debt before it starts charging interest then yes, obviously you will pay interest.

However you will have saved a bucket load of interest and the debt will have a go to rate of less than you are currently paying. 

So even if you can't clear the debt or BT it, there is no downside (unless you like paying more in interest).

Dannii75

MorningcoffeeIV said:

If you can't repay a debt before it starts charging interest then yes, obviously you will pay interest.

However you will have saved a bucket load of interest and the debt will have a go to rate of less than you are currently paying. 

So even if you can't clear the debt or BT it, there is no downside (unless you like paying more in interest).

thank you, I get it now. Much appreciated! 

SuperAllyB

Dannii75 said:

eskbanker said:

Not sure I'm following exactly what you're calculating from that?  In general, a 0% BT offer will be better than paying interest, but if you pay the minimum on the BT card for 15 months, while also paying the (reduced) minimum on the other one (now with a three-figure balance), what will that look like in 15 months' time?  Does the BT card have a better or worse APR than the existing one, once the 0% runs out?

Or are they perhaps one and the same card, just with an offer to BT from a notional other card?

So sorry for having completely confused you. 

Card 1 32% has a balance of £1500

Card 2 18% has a balance of £2387 & they're offering me a BT of £1396 at 0% for 15m. 

I currently pay £100 fixed repayment on card 2.

My query is, am I correct in thinking I'd need to pay back the total for card 2 over 15 months? otherwise I'm only paying back the higher interest first & the 0% over 15m won't get paid so I'd end up paying interest on that too.

I hope that makes more sense! I'm really confusing myself with this so I'm not surprised I'm confusing you also. 

Thank you for trying to straighten this out!

Presumably you'll also be able to throw whatever you're currently paying on card 1 to card 2 as well once card 1 is cleared?

In which case you'll be a lot closer to paying it off than you're anticipating.

Dannii75

SuperAllyB said:

Dannii75 said:

eskbanker said:

Not sure I'm following exactly what you're calculating from that?  In general, a 0% BT offer will be better than paying interest, but if you pay the minimum on the BT card for 15 months, while also paying the (reduced) minimum on the other one (now with a three-figure balance), what will that look like in 15 months' time?  Does the BT card have a better or worse APR than the existing one, once the 0% runs out?

Or are they perhaps one and the same card, just with an offer to BT from a notional other card?

So sorry for having completely confused you. 

Card 1 32% has a balance of £1500

Card 2 18% has a balance of £2387 & they're offering me a BT of £1396 at 0% for 15m. 

I currently pay £100 fixed repayment on card 2.

My query is, am I correct in thinking I'd need to pay back the total for card 2 over 15 months? otherwise I'm only paying back the higher interest first & the 0% over 15m won't get paid so I'd end up paying interest on that too.

I hope that makes more sense! I'm really confusing myself with this so I'm not surprised I'm confusing you also. 

Thank you for trying to straighten this out!

Presumably you'll also be able to throw whatever you're currently paying on card 1 to card 2 as well once card 1 is cleared?

In which case you'll be a lot closer to paying it off than you're anticipating.

I hadn't considered that, you're quite right. Thank you!