Using a money transfer to extend 0% for existing balance

[midnightmoomoo]

Hopefully I can explain this without confusing everyone!

I have an MBNA card which has a 0% rate due to end in Feb next year. They are offering a 0% money transfer deal until Nov 16 (obv with a handling fee).

My question is, can I take the money transfer, then use the money to repay the existing debt, thus extending the 0% period from Feb 16 to Nov 16?

For example, if I have a £2k balance, and a £4k limit, can I take the extra £2k as cash into my bank, then pay it back to the card before the initial £2 0% runs out in February, thus clearing the initial debt before the 0% deal ends, and in its place putting in another £2k money transfer debt also on 0% until November?

I think this will work but DH has managed to confuse me!

I don't think so.

If you repay £2k (after taking it as cash), it would repay the element least beneficial to you ie the most recent transfer.

They have to apply the payment to the highest interest rates but given they are both 0% that wouldn't make a difference.

Yes this can work but the timing has to be right on the repaying of the original 2k. The old balance 0% period has to have finished and you need to wait for the statement that says X amount of interest is payable on your next statement. At this point any payments made to this card have to be applied to the highest interest rate.

I think it can work but would it not be easier to transfer the existing balance to a new 0% balance transfer card that doesn't have a transfer fee? could save your self a few pounds and have a longer 0% term

Just go for the standing order technique and it all becomes academic