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dpg50000

Letter From Barclaycard

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The banks must be getting really desperate to stuff customers with debt. I've just had a letter from Barclaycard advising me of two 0% offers I can take advantage of.

The first is the usual 0% on balance transfers, with a 2.9% fee. The second says I can transfer money to my bank account (up to 90% of my credit limit) and pay 0% until June 2014, subject to a 1.9% fee.

So, I could, in effect, borrow for almost 6 months at a rate of 1.9%. How desperate must they be getting?

Edited by dpg50000

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The banks must be getting really desperate to stuff customers with debt. I've just had a letter from Barclaycard advising me of two 0% offers I can take advantage of.

The first is the usual 0% on balance transfers, with a 2.9% fee. The second says I can transfer money to my bank account (up to 90% of my credit limit) and pay 0% until June 2014, subject to a 1.9% fee.

So, I could, in effect, borrow for almost 6 months at a rate of 1.9%. How desperate must they be getting?

Not much room for Martin Lewis's famous 'stoozing' aka interest rate arbitrage in these numbers.

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The banks must be getting really desperate to stuff customers with debt. I've just had a letter from Barclaycard advising me of two 0% offers I can take advantage of.

The first is the usual 0% on balance transfers, with a 2.9% fee. The second says I can transfer money to my bank account (up to 90% of my credit limit) and pay 0% until June 2014, subject to a 1.9% fee.

So, I could, in effect, borrow for almost 6 months at a rate of 1.9%. How desperate must they be getting?

Not really desperation. If you could create money in the way that they do you would be doing everything you could to claw in the interest.

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Not much room for Martin Lewis's famous 'stoozing' aka interest rate arbitrage in these numbers.

Agreed. But I was just surprised by the fact you can withdraw pure cash straight into your bank account, so for example if you had trouble paying the mortgage you could use this to kick the can 6 months further down the road……

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Not really desperation. If you could create money in the way that they do you would be doing everything you could to claw in the interest.

But 1.9% probably doesn't even cover their costs, especially if a portion of that debt ends up getting written off.

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But 1.9% probably doesn't even cover their costs, especially if a portion of that debt ends up getting written off.

What costs? A mass produced letter and someone to tap a couple of keys on a keyboard?

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LLoyds just sent my business an advert for business loans.

Since they were the ****ers that called in my last business loan with no warning when I had a perfect banking record, they can go swivel.

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But 1.9% probably doesn't even cover their costs, especially if a portion of that debt ends up getting written off.

As previously noted, they do however have a massive database indicating the portion of balances transferred where the borrower will miss a payment before paying off the balance or moving it away. At this point your credit record worsens and you are no longer eligible to port your debt away from them, and you have fallen foul of the terms and conditions attached to the 0% deal and so they can kick you onto full whack at circa 15%-20% APR and now they are making money.

Hence unless you're on top of things...

Atrapitis.gif

As pointed out time and again on here, there are really two approaches to debt that make sense, either be on top of if and use it carefully with a careful consideration of how much debt you should carry and how much you can afford to carry, or just load up like a heroin addict chasing smack without any intention of ever paying a penny of it back. Either approach works with these offers - what doesn't work is allowing the apparent largesse of the credit card lender to trick you into believing that you're managing your debts, when really your debts are managing you.

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I've had more than a few fishing letters from various credit card companies lately, must admit there's a definite Whiff of desperation in the air at the moment,

Local EA's seem to be doing leaflet drops on a weekly basis

all trying to talk up the market "you may have seen & heard In the media about the renewed boyancy in the housing market" ha it's laughable but the desperation is definetley there.

TPTB seem to be very good at co-ordinated media campaigns to hide the truth and manipulate the sheeple.

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As previously noted, they do however have a massive database indicating the portion of balances transferred where the borrower will miss a payment before paying off the balance or moving it away. At this point your credit record worsens and you are no longer eligible to port your debt away from them, and you have fallen foul of the terms and conditions attached to the 0% deal and so they can kick you onto full whack at circa 15%-20% APR and now they are making money.

Hence unless you're on top of things...

Atrapitis.gif

As pointed out time and again on here, there are really two approaches to debt that make sense, either be on top of if and use it carefully with a careful consideration of how much debt you should carry and how much you can afford to carry, or just load up like a heroin addict chasing smack without any intention of ever paying a penny of it back. Either approach works with these offers - what doesn't work is allowing the apparent largesse of the credit card lender to trick you into believing that you're managing your debts, when really your debts are managing you.

I got the same letter that the OP got...tempted to use part of it to buy a newish car...I'm well versed in "stoozing"...so I'm willing to pay, perhaps a 50 or 60 quid fee on a balance transfer of a couple of grand..although you always have to keep on top of it...Had an old college debt which is now virtually paid off - which I've managed using this method...Got a nationwide card about a year ago which had 0% interest on balance transfers for 20 months...

Just play them at their own game...Just once you've transferred it over, don't use that new card..

These deals are targeted at specific people...they must know that I would avoid to pay interest...

Edited by Dave Beans

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LLoyds just sent my business an advert for business loans.

Since they were the ****ers that called in my last business loan with no warning when I had a perfect banking record, they can go swivel.

A good example of debt revulsion - when those who are fit to borrow have no intention of doing so. Causes problems for QE style economic policies.

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Not much room for Martin Lewis's famous 'stoozing' aka interest rate arbitrage in these numbers.

After many years of eschewing any such thing, my disillusionment to put it politely with everything has reached the point where I'm doing this. There are quite a few offers that I've had recently where this works.

I had a Nationwide card last year with a 15 month interest free period on new purchases. I racked up a wedge of debt on it by using it for almost everything, and the month before the 0% offer lapsed, I switched to an offer from lloyds another 15 months 0% on new purchases, plus 15 months 0% on the balance transfer. The fee was initially 3%, but they refunded all of that a month later. If I get a similar offer next year, and at this point, there are similar available, I'll do it again, it was minimal hassle. Even at 2% on savings accounts (and the multiple 3% current accounts I have), it's not a bad saving plus its playing it like they don't want you to play it.

As long as I don't mess up and switch in very good time, I plan on doing this ad infinitum so long as there's even a marginal arbitrage op. The cash is sitting there (earning a pittance, but a pittance is > 0%) for when it they pull the plug on such deals, so no worries.

Here's hoping they are stupid enough to offer 90% of the credit limit as cash with no fee soon. They probably will.

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After many years of eschewing any such thing, my disillusionment to put it politely with everything has reached the point where I'm doing this. There are quite a few offers that I've had recently where this works.

I had a Nationwide card last year with a 15 month interest free period on new purchases. I racked up a wedge of debt on it by using it for almost everything, and the month before the 0% offer lapsed, I switched to an offer from lloyds another 15 months 0% on new purchases, plus 15 months 0% on the balance transfer. The fee was initially 3%, but they refunded all of that a month later. If I get a similar offer next year, and at this point, there are similar available, I'll do it again, it was minimal hassle. Even at 2% on savings accounts (and the multiple 3% current accounts I have), it's not a bad saving plus its playing it like they don't want you to play it.

As long as I don't mess up and switch in very good time, I plan on doing this ad infinitum so long as there's even a marginal arbitrage op. The cash is sitting there (earning a pittance, but a pittance is > 0%) for when it they pull the plug on such deals, so no worries.

Here's hoping they are stupid enough to offer 90% of the credit limit as cash with no fee soon. They probably will.

If you have two or three cards, you can just constantly swap between them...they each usually offer you several deals over the course of a year...

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If you have two or three cards, you can just constantly swap between them...they each usually offer you several deals over the course of a year...

Indeed. The key point about the lloyds deal was the cashback on the whole transfer fee - those are a bit rarer (I had to take a completely new card to get it). But from time to time, yeah, they come up.

Notably, the credit limit on this one is just ludicrous (high). Given they presumably they have access to my total credit limit on other cards when doing the 'checks', it beggars belief that the total possible on cards in my possession is now knocking on my annual salary. Quite simply, its nuts.

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Not much room for Martin Lewis's famous 'stoozing' aka interest rate arbitrage in these numbers.

If you can take the cash and pay it off your mortgage it might be a good deal, if you are being charged say 4% on the mortgage as a long term investment you'd be quids in.

If you where on nationwides BMR would it still be worth doing as that's currently 2.5% against a one off fee of 1.9%.

I look forward to someone doing the maths.

Edited by interestrateripoff

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Well, that's another plus about walking away from the blood suckers and not giving a rats ass about your credit record - no begging letters.

I have never felt better.

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It reminds me of a conversation I had with some credit card saleswoman in the days when they used to pop up in all sorts of places.

'It's a great deal, 0% interest!'

'No thanks.'

'Why not, it's 0% interest!'

'I've got a better deal, thanks.'

'How can you have a better deal than 0% interest.'

'1% cashback'. :lol:

Edited by Austin Allegro

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BoS and Lloyds are offering 2yr 0% transfers with a 'reduced' fee of 1.5%. Going to transfer my balance instead of paying it off my 15month 0% Tescos card I took out and then bought half my kitchen + garage materials on. Savings in the bank may be earning little, but more than its costing me to borrow the money so why pay it off?

And and for day to day spending, Halifax give me £5 a month if I spend more than £300 on their card, and if I'm spending more than that 1% cash back on my Barclaycard (old Egg card).

Did have to laugh at the story today about people being stranded not being able to use their cards yesterday. Why do you have cards from only one supplier? With a DD set up to pay off the balance you can keep an emergency card or two with out ever paying a penny interest.

Edited by My Name Is ??

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It reminds me of a conversation I had with some credit card saleswoman in the days when they used to pop up in all sorts of places.

'It's a great deal, 0% interest!'

'No thanks.'

'Why not, it's 0% interest!'

'I've got a better deal, thanks.'

'How can you have a better deal than 0% interest.'

'1% cashback'. :lol:

Nice, but in truth it's not a better deal if you can generate > 1% through IR arbitrage.

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Did have to laugh at the story today about people being stranded not being able to use their cards yesterday. Why do you have cards from only one supplier? With a DD set up to pay off the balance you can keep an emergency card or two with out ever paying a penny interest.

They played a clip of some single bloke on the radio this morning (therefore he 'never has anything in the fridge, cupboards etc') who said he went hungry last night because of it. Total reliance on one piece of plastic for his entire wellbeing....[facepalm]

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Even when single I have plenty of pasta, rice, beans, frozen veg, precooked meals frozen, cereals etc.

He's just a useless tosser, probably why he's single.

To be fair, I'm single probably because I have cupboards full of pasta, rice, cereals and freezer full of food. The preppers life is a lonely one.

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