17.10.11 Barclaycard 'Offer'

Mrs MWSC was invited today to "enjoy a life less complicated" by the people at Barclaycunt.  They felt it appropriate to send a letter, Terms and Conditions, and a small leaflet, to encourage her to simplify her life.  At face value, there was possibly a chance (small, of course) that there was some merit in the offer, so we read the information that related to a balance transfer opportunity with 0% interest for 20 months.  The 2.5% handling fee was not really a put-off, so perhaps this was something to consider.

The two people on the cover seemed to be really feeling the benefits of a less complicated life, and Mrs MWSC and I gazed lovingly into each other's eyes, recreating the image presented to us by Barclaycard.  We agreed that our lives could indeed benefit from the removal of complications, so we read on.

It turns out that the 0% interest arrangement is complemented by zero percent on purchases for three months (assuming there's enough leeway regarding the credit limit and the balance transferred) and that seemed helpful as well.  Then though, we saw a 'representative example' showing an APR of 19.9%, and the same rate for purchases.  Now, we are not experts, but in times of hardship, a 20% (let's stop pissing about with the 0.1% different over a year) cost of borrowing is not low.  In fact, twenty per cent interest is not good at all.  Perhaps Barclaycunt was hoping Mrs MWSC would apply and be given a card and reasonable limit, move all her outstanding stuff over with a 2.5% handling charge, pay off bugger all for 20 months, and then start dying as the complications to her life start to be reintroduced.  Worse, though, is the fact that usually, any monthly payments made go towards bringing down the 'zero interest' element of the debt, and not the element relating to new purchases which, after the initial three months, would be at 20% interest.  I have not bothered to check the terms as I have confidence that this is exactly the case.

So there you have it.  A life less complicated amounts to borrowing whatever money they will allow, at a fixed fee of 2.5% and three months to use the card at 0% before it flips to 20%.  Any ongoing use will be at 20%, and eventually, all the money on the card will be at 20% so that your life becomes more complicated later.  It's at that stage where you may adopt a slightly different position, and not the loving gaze into the eyes of your partner.  Instead, it could just be time to roll over, and die - feet in the air.

...