Financial advice - Can anyone see a flaw in this plan??

[dave_s13]

Bear with me this could take a while....

Barclaycard are doing a special offer where they send you cheque which can be used for eiither transferring a credit card balance or paying off a personal loan.

For whatever purpose the cheque is used the apr on that balance will be 2.9% untill it is payed off.

My loan currently has settlement figure of

£2382.16 with 24 payments left.

If I continue to pay it off with Nationwide its costs £118 ish/month and the total amount payable is:

£2835.36

This is where I need someone to tell me I'm adding up right.

If I transfer it to my credit card and pay it off over 24 months
the total interest payent for 24 months is:

(2382.16 x .029) x 2 = £138.16

So total amount payable should be

2382.16+138.16 = £2520.32

Which is £105 / month

So to summarise

its either stay put and pay
<b>£2835.36</b>
or move it and pay
<b>£2520.32</b>

Saving <b>£315</b> and giving me the option to pay it off quicker get another loan and buy a FireBlade......yay!!

I've done that right.....haven't I???????

Fukc...my head hurts, I'm off to lie down

[Chris_Lacey]

If the credit card transfer really is until the end of the loan term then yes it's a good idea, however keep an eye open for early payment charges and the like...

[Rock Star]

Well, Personally I would go for the Saving of £315, pay off the outstanding debt and get the Fireblade!!!! :D But then again..me and money don't do well together!!:)

[Andy]

Fukc...my head hurts, I'm off to lie down [/B][/QUOTE]

I'm not surprised.
Just check B/C uaually stipulate that you must make
at least one purchase on your card per month, to
keep the low apr rate. If you don't they will apply
their normal rate - something like 18 %:eek:

[NikB]

Why don't you just get a card with 0% transfer rate. Halifax have one at the moment. The only thing you have to keep an eye on is that it lasts for 5 months, then transfer it to another 0% card, there is normally at least one around.

Make sure that you cancel the card you tansfer it from otherwise you will just rack another bill up!

Try looking here

http://uk.biz.yahoo.com/cc/index.html

Nik

[dave_s13]

Good idea but I don't think they'll do it for a personal loan, just card balances.

ta

[NikB]

Sorry, I had missed that one detail. Why don't you do what you suggested and then transfer the balance!

Happy wheelies

Nik

[Papa Lazarou]

Why don't you buy one of those Eduardo Suarez masks and then fake your own death??

(I'm referring to that Egg advert if you don't know WTF I'm on about ;) )

[The Gill]

The use of the cheque may have a cash handling fee of 1.5 - 2.5% - check as GM Card one's do. This may wipe out the savings you'll make
I am paying for my 200 on 2 credit cards - one is 0% the other is 2.9% :)

[Bean]

The low APR balance transfer will most likely be for a short period only, say 6-12 months.

You could take out a new credit car every 6 months and transfer your balance each, thus only paying a minimal APR on the debt. I actually did this and managed to clear the credit card this week!!! :)

Make sure you can pay the loan off with a credit card and don't have to pay a penalty for early repayment. :)