Balance Transfer or pay off

thriftybabe

I am intending to spend quite a high amount of money on an extension and have about £22k for 12 months on interest free credit cards. Already have another £20k in cash and this should cover the cost of extension ... hopefully! I will be getting dividend from my company (own business) hopefully in October. Would you bank this and get some interest when the 0% rates run out in April 09 or would you balance transfer? I like the idea of balance transfer at a rate of 2.8 then 0% for 12 months as this would give me enough time for my monthly salary to pay off the credit cards whilst getting interest on my dividends in the bank. Any thoughts would be greatly appreciated.

adaze

Without doing any calculations I would imagine sticking it in savings would make you more then the 2.8% BT fee would cost... on that basis I would bank the dividend and BT the 22K. If you can't BT that amount or there are any problems then you can always use the dividend then.

thriftybabe

Thanks Adaze, if I can get BT when I need it that is what I will do. I will get the dividend 6 months before I will need to pay off credit cards so i could get a bit of interest even for 6 months if i cannnot get BT. Though it should be ok as both my hubby and i have a decent credit rating. Thanks again