Save $11,480 with the BarclayCard Ring

Save $11,480 with the BarclayCard Ring

Barclays Ring Mastercard: How Much Could You Save with 15-months at 0% APR?

Getting out of debt can be tough. While you might think that credit cards are the opposite thing to use to get out of credit card debt, with the right offer, credit cards can help you do just that!

Barclays Ring offers 15-months at 0% APR for new cardholders. Let’s take a look at what that can mean when it comes to getting out of debt.

Even after the 2% balance transfer fee for transfers completed within the 0% APR period deadline, if you keep to a payoff schedule, you can save money in the long-run and potentially even get yourself out of debt for good.

$5,000 in Credit Card Debt (18% APR)

#1 Minimum Payment

At $100 per month, it would take 94 months (that’s nearly 8 years) to pay off a $5,000 credit card balance. In addition to the $5,000 in principle, the cardholder would pay $4,311 in interest. 46% of all payments would go to interest!

 

#2 Pay Off Half, Interest Free

If that cardholder could pay off half of the $2,500 balance during the 0% APR period at $166 per month for 15 months, the savings would be huge. Even with a $100 balance transfer fee, the savings add up fast. Keeeping up that rate of $166 per month after the first 15 months, they would pay off the card in just 18 months with $355 in interest. That’s a $3,856 total savings!

 

#3 Pay Off All, Interest Free

To pay off the card in its entirety in 15 months, the payment would be $333 per month. But at the end, this saves $4,211 compared to interest from the old card.

 

$10,000 in Credit Card Debt (20% APR)

Some cards charge up to 29.99% APR, but let’s say the third example credit card charges a 20% interest rate.

#1 Minimum Payment

With a $10,000 balance and $200 monthly payment, it would take 109 months, or a little over 9 years, to pay off the card. At that rate, you would pay $11,680 in interest. That’s more than the total balance!

 

#2 Pay Off Half, Interest Free

If you could manage $340 per month that knock the balance down to $5,000, there are still material savings with the lower 13.99% APR. If you could keep up the same $340 per month, you could pay off the remaining $5,000 in 18 months with $783 in interest. That’s a $10,697 savings!

 

#3 Pay Off All, Interest Free

After a $200 fee, if you could pay $680 per month, you would be fully debt free in 15 months and save $11,480 total.

Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated April 30, 2019 but some terms and conditions may have changed or are no longer available. For the most accurate and up to date information please consult the terms and conditions found on the issuer website.

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