We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Credit Card Confusion

I have rang Virgin today to ask what interest I'm paying on my outstanding balance which is £682 @ 0% and 652 @ 15.9%. I have a new Barclycard who will offer 6.9% for the life of the balance transfer - which is better, I can't figure how to work it out.

Comments

  • skyrider007
    skyrider007 Posts: 1,108 Forumite
    Surely the 0% offer would benefit you more if you plan to pay off the debt within the period in which the 0% interest is offered.

    A fixed 6.9% interest would be cheaper IF you plan to spread repayments over a longer time.
  • Locke
    Locke Posts: 485 Forumite
    How long do you think it will take you to pay it off?
  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    There's a handy calculator near the bottom of the page under 'free tools' and minimum repayment calculator. Just punch in the figures.
  • SarahNeedle1872
    SarahNeedle1872 Posts: 6,166 Forumite
    I have rang Virgin today to ask what interest I'm paying on my outstanding balance which is £682 @ 0% and 652 @ 15.9%. I have a new Barclycard who will offer 6.9% for the life of the balance transfer - which is better, I can't figure how to work it out.
    If these are both on the same card, any payment u make will go off the 0% balance first, leaving the other £652 earning 15.9% interest. It depends on how long u think u will take to pay it off.... if its likely to take u a long time to pay it off, the 6.9% deal would probably be better
    'We are all in the gutter, but some of us are looking at the stars' - Oscar Wilde
  • CannyJock
    CannyJock Posts: 3,838 Forumite
    1,000 Posts Combo Breaker
    I have rang Virgin today to ask what interest I'm paying on my outstanding balance which is £682 @ 0% and 652 @ 15.9%. I have a new Barclycard who will offer 6.9% for the life of the balance transfer - which is better, I can't figure how to work it out.

    Is there a time limit on how long the LOB deal is for? When does you 0% period run out?

    If the 682 and 652 are both on the same Virgin card then I wouldn't move them onto the LOB card. Transferring anything less than the full amount will mean that the "allocation of payment" rules will match your "payments/transfer" against your 0% amount anyway.

    If both on same card you're effectively on 7.77% until your 0% period runs out. This changes each month as your payments will reduce your 0% amount. If there's a 3% fee for moving it so that'll make you worse off in the short term with a 6.9% LOB but better off in the longer term.

    Presumably Barclaycard are charging you a BT fee for the trouble? Personally I'd call Barclaycard and tell them that you don have a balance to transfer but that you're not happy with the rate they're offering and the BT fee, see if they'll reduce it - nothing to lose :)

    If you get a good offer, you could transfer it to Barclaycard on best terms possible. Then once your Virgin card is clear and you've had a nil balance statement you could always phone them and ask for a renewal of your 0% deal, no fee etc etc.

    Worth moving it to the 6.9% LOB before your 0% period runs out of course.
    "A child of five could understand this. Fetch me a child of five." - Groucho Marx
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.6K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.7K Work, Benefits & Business
  • 603.1K Mortgages, Homes & Bills
  • 178.1K Life & Family
  • 260.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.