Best Balance Transfers Discussion Area

spf_2

NickX wrote: »

I would put money on the overdraft interest being significantly more than the 2.98% BT fee.

I agree 100% that the quoted overdraft APR will be higher than the 2.98% BT fee. However, I have noted on various blogs confusion about APR, AER, SVR etc. I just wanted to point out to consider the overall COST to simplify things rather than interest rates. For example : A 2.98% BT fee (on a 12 month duration card) is approx equivalent to a 5.4% APR loan, a fact not often pointed out by CC companies ! Similarly if the overdraft account is in credit 50% of the time, then the cost will be (approx) equivalent to 1/2 of the quoted overdraft APR. Although I appreciate that this is probably nothing like the real situation, these two examples taken together would mean that the overdraft APR would need to be 11% or more before the BT option was cheaper. I apologise for not being clearer: My main point was to consider the NET position and to look at total COSTS.

Apologies.

NickX

spf wrote: »

I apologise for not being clearer: My main point was to consider the NET position and to look at total COSTS.

No need to apologise, you made your point very well.

I agree that if the overdraft is only being used occasionally it will be cheaper than paying a 2.98% Balance Transfer fee, it just unfortunately most people with overdrafts are continually overdrawn and paying an interest rate equivalent to much more than 2.98%.

Jonny0000

Looking for the best current balance transfer rate available:

Not barclaycard, Egg, NBNA or HSBC!

Ideas?

Was thinking halifax - but not sure if they are offering it now. How about post office?

Briggsy.notts

OK a little confused so wonder if the following information will help. My account with the overdraft is never in credit and hasn't been for the last two years which is why I want to clear it. It currently costs me about £15 in interest charges every month so anything better than that is a bonus.

So will the credit card paying off the overdraft still be a better idea?

NickX

Briggsy.notts wrote: »

So will the credit card paying off the overdraft still be a better idea?

Yes, you will save loads with the 0% interest rate despite having to pay a Balance Transfer fee of 2.98%

I think spf was thinking of a situation where you were not overdrawn all the time.

There is no interest payable on the Balance Transfer fee with Virgin.

Briggsy.notts

Thanks for everyone for the advice and for pointing things out. I'll be glad to get rid of the interest charges on the overdraft.

spf_2

Briggsy.notts wrote: »

Thanks for everyone for the advice and for pointing things out. I'll be glad to get rid of the interest charges on the overdraft.

Good luck! Congratulations on shortly being overdraft free!

Moggles_2

Jonny0000 wrote: »

Looking for the best current balance transfer rate available: not Barclaycard, Egg, MBNA or HSBC. Ideas? Was thinking Halifax, but not sure if they are offering it now.

Yes. 13 months at 0% is currently available to new customers. There's a 3% handling charge.

http://www.halifax.co.uk/creditcards/pluscard136.asp

Alternatively, have you considered Mint?

http://www.mint.co.uk/credit-cards.asp

PixelPound

Moggles wrote: »

Yes. 13 months at 0% is currently available to new customers. There's a 3% handling charge.

http://www.halifax.co.uk/creditcards/pluscard136.asp

Alternatively, have you considered Mint?

http://www.mint.co.uk/credit-cards.asp

Don't forget Quidco. Currently £20 for a successful HBOS. (For HSBC its £25, though I guess Jonny0000 tried them - also 0% for 13mnth but 2.5% bt fee)

caroline233

I transferred a balance to Marks & Spencer card because of the low lifetime balance rate. Today I've come home to a letter telling me the APR is going up to 23.9% from 18th November. I really don't know what to do. Help!