Thanks a million - thats exactly what I wanted to know.  I just have to go and do my sums now...

 Patsy.
 

Capital One are offering a 0% Balance Transfer rate at the minute for about 11 months with a 1.7 % Transer fee (I think) which is quite good.

The way I calculate the different options to compare is like so:

If the credit card company offer you 0% on Balance Transfers for 11 months with a 1.7% and you transferred a balance of £2000 onto that card you would pay £34 as a balance transfer fee. - (1.7% of £2000 = £34)

however compare this with

If you take the example that a Credit Card charges you say 15.9% APR (Annual Percentage Rate) and divide this by 12 months (to calculate monthly interest) @ 1.33% and you had a balance of £2000 (which would normally reduce each month therefore reducing the interest but for this example we'll pretend the balence doesn't reduce) you would be paying £292.60 in interest over 11 months. - (1.33% of £2000 = £26.60 x 11 = £292.60)

So as you can see transferring a balance off of a card charging you 15.9% APR to a card which gives you 0% for 11 months with a 1.7% fee can save you nearly £258.60 over 11 months.

I hope the above info is actually correct but if somebody calculates it differently then please feel free to explain why cause I'm no expert on the matter.

Hiya

The minimum payments on credit cards vary between lenders. Some will request monthly minimum payments of 1.5% (MBNA), whilst others will ask for 3% (HSBC) or higher. Each lender is required to set out in a summary box and their terms and conditions what they expect as a minimum repayment. So check out their webpages or give the lender a call if you have a specific card in mind.

On interest it is quite complicated to work out as lots of things will impact on the final amount e.g. differing interest rates, how much you use the card, how you pay it off etc. Some lenders do provide examples of what a typical balance would cost over certain periods. If you are unsure ask the lender.

 OJ

Hi,

I'm going to sound like a complete novice here, but seeing as I am one there's no harm in it.

I am coming to the end of a Balance Transfer deal with Virgin and have £3,500 left to pay off.  My problem is that I don't know how to calculate actual repayments when looking at the deals out there.  When a card offers 5.9% on Balance Transfer until its paid off, how much do I end up paying, and will it work out more than the 3% transfer fee with 0% other credit card offer.  Can someone shed some light for me, please!
 
Thanks...