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What should I do?

Hi,

I am having problems with my credit card debt.

I was wondering if anyone cud advise me on the best way to deal wiv them.

I have the following cards:

MBNA -

Oustanding balance - 2800 (approx)
Credit limit - 4400.
APR - 6.9% until January 2007
Monthly payment - 22.00 (approx)

NatWest -

Outstanding Balance - 3300 (approx)
Credit Limit - 3500.
APR - 16.9%
Monthly payment - 78.00

MINT -

Outstanding balance - 0
Credit limit - 700
APR - 0% until December i think.

I have savings of around 2800.

My plan was to get the credit limit of my Mint card to around 1100, use 2300 of my savings to pay on my Nat West card, and transfer the remaining balance on my NatWest card to my MINT card, unfortunately my request for a 400 pound credit limit increase was rejected by MINT.

Now I do not know what is the best thing to do. Please help
«13

Comments

  • What will the interest rate of MBNA be after January and what will Mint be after December?
  • The MBNA card will be 15.9%.

    The Mint card will be also 15.9%
  • lynzpower
    lynzpower Posts: 25,311 Forumite
    10,000 Posts Combo Breaker
    TBH with you

    Id close the mint card down if I were you , that 700 limit is poinless, but it makes it look as igf you have debt open to you.

    Pay 2500 to your Natwest, leaving you with 5200 total debt.

    Once youve closed down all the extra credit you may find that you will be offered more later. Try going for a low life of balance card in a few months.
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • Hereward
    Hereward Posts: 1,198 Forumite
    You wouldn't be permitted to transfer for NatWest Credit Card to your Mint card as they are both owned by RBS. I agree with lynzpower, you would be better off using your savings to reduce the NatWest cards balance and then transfering the remainder to a low rate card, such as your MBNA card.
  • I'd pay all the savings off NW then ask Mint if they'd be willing to extend the 0% period? If they are then transfer the remainder of NW onto them. If they don't extend it - I don't think the savings would cover the transfer fee - so transfer the NW on to MBNA - do you pay a transfer fee on this?

    When you pay off the NW card the next statement will have a few £s of interest left to pay. Pay this off and wait for the statement that shows a £0 balance. Then you could ask them if they have any BT offers that you could take advantage of. Ask MBNA if they are willing to extend the 6.9% period. If not when the 6.9% period is about to run out put the whole balance back on NW (assuming they've given you a deal on BTs)

    Have you posted an SOA (statement of affairs) - its a detailed account of your income and outgoings ? See southernscousers sticky thread at the top of this forum for a template. Other posters will give you ideas what you can cut back on to free up some more money to pay off the debt.
  • Sorry I didn't realise that about mint and NW.

    In that case I agree close down Mint. Pay your savings off NW and transfer the rest to MBNA.

    When the NW is totally clear and you are near January - ask NW for any transfer deals so you can put the MBNA back on.
  • nidje
    nidje Posts: 119 Forumite
    I'd agree with what's been mentioned already.
    Close the Mint card, use your savings to reduce the NW card and transfer the balance to MBNA. I'd close the NW card so you're not tempted to use it. When the introductory period on the MBNA card comes to an end look about for a better deal and transfer the balance across. Again remember to close the MBNA card.
  • Ok thanks.

    I will close my mint card with immediate effect. I will then pay-off my nat west card and transfer the balance to my MBNA card if possible.

    Unfortunately it is unlikely that I will be accepted for another credit card at the time my MBNA rate goes up, I was rejected for several credit cards and loans at the time my 0% rates on my MBNA and NatWest cards ran out.

    Therefore would you keep the NatWest card open until my 6.9% interest period runs out with MBNA? To see what deals they will offer me?

    Dont worry about me been tempted to use it. That is not an option, the card was cut-up many months ago!
  • Hi

    Just to update...

    I have sent letters to HSBC and MINT today cancelling my credit cards with them. These both had nil balances.

    I then transferred as much as I could from my NatWest card to my MBNA card.

    I then went to pay the remaining amount from my NatWest card with my savings via online banking.

    I set-up the payment but when it came to clickin on the confirm button I bottled it and closed the webpage instead!
  • rog2
    rog2 Posts: 11,650 Forumite
    10,000 Posts Combo Breaker
    If at first you don't succeed - try and try again!
    I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
    If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.

    HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7

    DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS
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