Monday, 10 March 2008

Interested In Interest

Credit cards with zero balances are dangerous things as it is so easy to just make that one purchase on the card and well - if your in for a penny, suddenly it becomes a few thousand pounds. Well that has been the case in the past for me but no more.

No, I am now more interested in the interest. And my empty credit card card had an interest rate of 3.9% for balance transferes which I think is very good. It is better that the current rate of interest I have on my second credit card and that particular card has send me credit cheques.

Yep I am into a major shuffle with my debt balances as I want to get rid of my Flexiloan account balance. It has a current variable interest rate of 16.8% - ouch! I can't see that going anywhere but up in the near future. So if I could half it would that be a good thing?

Now I know every one goes on about zero precent credit cards and they are great, just the ticket and all that but the chances of moi getting one is zip.

Transfering a credit card balance or a store card (if you mad enough to have one of those) balance is very easy but loans are a different story but credit cheques are the answer if I want to get rid of my Flexiloan.

The credit cheques have a 3% handling fee and a 8.94% interest rate for the life of the balance better than the 16.8% I am currently paying! Tomorrow I shell use a cheque to clear the majority of my Flexiloan which will then become my number one taget for snowballing.

So what do you think? Is this a bad move or what?

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