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    • westy_1981
    • By westy_1981 19th Sep 19, 6:47 PM
    • 71Posts
    • 6Thanks
    Which balance transfer option is best? Fee or not to Fee . . .
    • #1
    • 19th Sep 19, 6:47 PM
    Which balance transfer option is best? Fee or not to Fee . . . 19th Sep 19 at 6:47 PM
    Hi, wondering if anyone can help with the following;

    Looking to transfer approx. 1k via balance transfer to an existing (dormant) CC that I haven't used in a while.

    Transfer options are;

    1) 0% interest p.a. over 24 months with a 3% fee

    2) 4.9% interest p.a. over 36 months with a 0% fee

    3) 0% interest p.a. over 9 months with a 3% fee

    What is the best option? I can pay it off with required DD per month at the required amount to complete payment of total balance within the 9 / 24 / 36 month timeframe. . .

    Which one will cost the least? or makes the most sense and why? (Calculations would be much appreciated)

    Thanks in advance
Page 2
    • SnowTiger
    • By SnowTiger 19th Sep 19, 8:02 PM
    • 3,882 Posts
    • 2,869 Thanks
    Thanks Ben - am I right in thinking that if I take the 0% fee option and 4.9%pa and pay it all off in under 12 months then I wouldn't incur any interest?? Or have I got it wrong?
    Originally posted by westy_1981
    Option 2? You'd pay 4.9% interest from the moment the balance transfer hits the card.

    With options 1 and 3, the balance transfer fee is 30 if you transfer 1,000.

    With option 2 you'd pay ~26 in interest if you made payments of ~86 a month towards the debt and paid it off over twelve months.

    For the sake of a fiver, option 1 might be best because it gives you the opportunity to pay it off over 24 months for 30.

    According to What's The Cost:

    • Ben8282
    • By Ben8282 19th Sep 19, 8:08 PM
    • 3,613 Posts
    • 2,008 Thanks
    The problem with option 2 is that there are so many different possibilities depending on how much you pay each month.
    When I said 6-7 months I was assuming a 1% minimum payment (10 per-month) with a lump sum payment at the end.
    The chart above illustrates a different option with a larger monthly repayment.
    • Terry Towelling
    • By Terry Towelling 19th Sep 19, 8:14 PM
    • 1,985 Posts
    • 1,680 Thanks
    Terry Towelling
    Glad to see my own spreadsheet is fairly accurate. If I put in 85.56 I get exactly the same result as SnowTiger. 78 per month takes a month or so longer to clear the debt and is almost bang on the 30 break-even point.
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