Balance transfer fees expressed as AER

    Just received an e-mail that made me think about all these 0% balance transfers I am apt to do. Spreding the cost over a period rather than pay cash straight away. That was until I looked at the table they supplied.

    Balance transfer fees expressed as annual equivilent intrest rates (AERs)

    this is based on a transfer of £1000,which is fully repaid in equal installments by the end of the 0% deal

    ..........Fee of 2% ..fee of 2.5% ..fee of 3% ..fee of 4%
    six months ..7.2% AER.. 8.9% AER ..10.7% AER ..14.5% AER
    nine months .4.9% AER ..6.1% AER ..7.4% AER ..9.9% AER
    one year ......3.7% AER.. 4,7% AER ..5.6% AER ..7.6% AER

    So it might be cheaper to take one with a low interest rate


    Original Poster

    That is the point, most cards now charge transfer fees and it was not until I seen the table that it dawned on me how expensive it can be

    I think there still are 1 or 2 that don't apply balance transfer fees.:)
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