MBNA 0% offer

jade_2

I thought that I would log on and share this with you, as I hope that I've just managed to save money!!!

I have two MBNA accounts, one was a straight forward account and one was a MAG card (Motorcycle Action Group). I paid off the MAG card in March 2004, and decided not to use it again - which I haven't.

Today, I got a call offering me 0% on all purchases and balance transfers for 9 months on the MAG card. I was loathe to take up the offer, preferring to have 0% on the 'main' card that currently has a balance of £9,724.11. The guy couldn't offer this, but suggested that I balance transferred £5,510 from the MAG card to my bank account, and then pay £5,510 off the main on account, meaning that I would pay 0% on the 5510, and standard rate the remaining amount.

I currently pay £300 per month on the main card, which is a little over the minimum rate.

I phone OH at work, who felt that this strategy would save us money and that I could split the £300 payment between both cards, this not increasing the monthly payment, but saving %.

I thought about this further, so I phone MBNA and got them to do a couple of calculations to work out the best split between the two cards, but the MBNA employee suggested that I talk to the Interest Rate department and put me through.

The result has been that MBNA have now dropped the rate from 24.9% to 16.9% with immediate effect (a difference of 8%) on the main card, and 6 months 0% on the MAG card.

We agreed that by setting direct debits to pay both cards, I would pay £180 on the 0% and £120 on the main, in order to maximise the amount paid off at 0%. I also cancelled the payment protection cover, which although dropping has been at £70 per month for the last 4 months, increasing the amount paying off the card.

I would never have thought to phone through and see what I could get, had it not been for MSE and the books (this is the one section that I have not actioned as I'm not confident with credit card companies).

I guess the motivation for this, was a letter from the bank informing us that we had paid off a loan this weekend, so as of next month, we will have an additional £585 per month.

In short, thanks to Martin's websites and books, I've had the confidence to negotiate in a financial area outside of my comfort zone and I think I've done rather well!

Thanks

Jade :T

Thunderbird_2

Hi Jade

Wish you all the best and good luck in sorting your finances.

Thunderbird

Tom_Saunders

why not apply for a mint, sky or capital one card and transfer the remainder of the 16.9% to that ?

Anyone who pays interest on a credit card really is struggling .........

jade_2

What a great idea. I wouldn't have thought of that!:T

I will talk it over with the OH and make a decision.

As I said this is the one area of financial management that I am very wary of.