Break Even Point on BT fees

goldmercury

I made a loss on an HSBC transfer last year. Took the card out in April on a 12 month deal. I believe the fee was 3% of the blanace. In June I had to repay the whole balance as I was applying for a mortgage and the lender wanted to see all my debts. I had to clear my stooze so i made a loss

However I am now back to stoozing again with my new offset morgage account. Stoozing will help me pay my mortgage off 7 years early and if I stick to my overpayments I'll have it paid of in 13 year opposed to 25.

All going well and kids/divorce don't get in the way I can retire at 40

wayoflife

goldmercury wrote: »

I made a loss on an HSBC transfer last year. Took the card out in April on a 12 month deal. I believe the fee was 3% of the blanace. In June I had to repay the whole balance as I was applying for a mortgage and the lender wanted to see all my debts. I had to clear my stooze so i made a loss

However I am now back to stoozing again with my new offset morgage account. Stoozing will help me pay my mortgage off 7 years early and if I stick to my overpayments I'll have it paid of in 13 year opposed to 25.

All going well and kids/divorce don't get in the way I can retire at 40

Good for you,

IMO looking at the bigger picture, ok you did make a loss short term, but if you were to keep that 'debt' on the card and go to someone who didn't care about this to lend you the money for the mortgage that company will inevitably charge a higher interest rate, even by a quater percent your looking at hundreds of pounds more per year so you were right to do what you did

always be positive about things :-)

Voyager2002

King_Weasel wrote: »

This doesn't answer your question but I can't see what the circumstances could be where you have to repay a balance during the 0% period. You might choose to do so as the interest-free period draws to an end and your next 0% card is ready for the balance transfer, but your question doesn't apply in that case.

If the stoozer loses her/his job and needs to claim state benefits, then the borrowed money might disqualify her/him from certain means-tested benefits. In that situation it might make sense to repay before the end of the interest-free period in order to receive the maximum benefit.