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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