22nd February 2022 | 5 minute read

Restructure nudges

In this post, we’re exploring one of the newest ilumoni app features, the restructure nudge, including what it does and who is likely to see it, and when. Let’s dive straight in!

What is a restructure nudge?

The restructure nudge is our newest nudge and it will highlight where you could use your available balances and credit more efficiently in order to reduce the total amount of interest you pay and, consequently, how long it takes to pay off that balance. In super simple terms, we’re talking about balance transfers: transferring balances to lower-cost products where there’s space to do so.

Why has this new nudge been introduced?

It’s really common to use different credit facilities in a slightly haphazard way, without thinking about what the interest rates are and whether we’re borrowing in a way that means we’ll pay the least amount in interest possible. This can often lead to situations where you might be using your overdraft but have a credit card with space on it that is much cheaper to use, for example. The restructure nudge is here to help with that so, no matter what you’re borrowing or why, you’re using your available credit in the most cost-efficient way possible.

How is this nudge different from other nudges in the app?

Our repayment options nudge works in a few different ways. For example, you may see what we call a ‘fixed repayment’ nudge, which will suggest you fix the repayment on your balance at its current amount. Or, the repayment nudge might suggest that you overpay on a balance this month, based on what the ilumoni app can see you could afford. To find out more about other nudges, read our About the ilumoni app post now

The restructure nudge is different in that it will look at your total balances and suggest reorganising your debts, i.e. changing the way they sit across your credit cards, to make sure you’re borrowing as cheaply as possible.

When suggesting that you could change where your borrowing sits, this nudge will also take into account the total savings you could make once any balance transfer fees have been factored in. Essentially, the app is doing the hard work here so you don’t need to sit and calculate those fees and savings yourself.

Who will see this nudge?

This nudge will be visible to anyone who has debt on one credit facility but has an available balance on another lower-cost product and where the savings in the next 12 months would outweigh any transfer fees. The nudge will look at credit cards only initially, not loans or overdrafts, when making these calculations and won’t show if that balance transfer would take you very close to a credit limit.  

However, it’s really important to know that the app can only make calculations based on the information you’ve shared with it. So, if you haven’t already, be sure to connect all your available accounts and balances to the app to make sure that the information you see is relevant and that ilumoni is working as best it can for you.

Connecting your accounts is really simple. Just go to the profile area of the app and, under ‘Linked accounts’ click ‘Add a new account’. If you have any problems connecting your accounts, just click the pink smiley face in the app to let our support team know.


How will the app know which nudge to show me?

At ilumoni, we believe that how you manage your borrowing should be your choice and our aim is to give you a useful tool and relevant information to help you make confident decisions. As a result, you may see more than one type of nudge in the ilumoni app at any given time. This way, you can explore the impact of the different options available to you and choose what’s best for you, based on your circumstances.

You’ll only ever be shown nudges that have a clear benefit for you, for example, ones that could save you money or help simplify your borrowing.

I have space on a lower-cost product, but I’m not seeing the restructure nudge. Why not?

First things first, please make sure you’ve connected all your accounts and balances to the app. You can do this in the profile area of the app, but let our support team know if you’re having trouble. ilumoni can only make calculations based on the information you’ve provided, so the more you can share, the better the app will work for you. 

If you have connected all your accounts and think you should be seeing this nudge, it may be that the potential savings aren’t great enough to trigger the nudge, once the balance transfer fees (usually up to 5% of the total amount transferred) have been factored in. However, please get in touch with our team and they can investigate this further for you just to be sure.

How does ilumoni know the balance transfer fees that I would have to pay?

We regularly look at the fees that providers say they charge, but before transferring a balance you should always double-check that the fees that ilumoni have calculated are correct for your specific products and have not changed recently. ilumoni won’t necessarily see if you have special balance transfer offers from your provider though, which may offer better savings. 

If you have any questions about this new nudge or want to know more, please get in touch with our support team via the app or the contact form on our website, and they can provide you with further information.

If you're concerned about your finances or are struggling with debt, the organisations on our Debt Helplines page can offer you additional support or advice. 

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ilumoni is a trading name of Monely Limited registered and regulated by the Financial Conduct Authority (928933 and 928681), registered in England and Wales (Company number 11886611), Registered Office: The Barnsley Digital Media Centre, County Way, Barnsley, S70 2JW

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