Cash Balance Transfer: Is this right?

Ralphy101

Hi

I currently owe £1500 as an overdraft on my hsbc account.

I currently pay in the region of £23 per month interest for this faciality... I calculate that as 1.5% per month interest totalling 18% APR.

I am looking to appy for the MBNA Platnium card, to which i can cash transfer into my HSBC then i can close the dreaded bank account.

MBNA platnium have an offer of 0% cash balance transfer for 14 months but with a 4% fee.

16.9% will then apply after 14 months.

Can someone confirm if these maths are correct?

4% of £1500 = £60... So MBNA credit card = £1560.

1) I manaage to pay £112 of per month to clear the money i'd pay 0% interest. happy days.

However if for instance i would not pay anything!! and the 14 months expire...surely it would still be cheaper than the interest payements i am paying with hsbc? 16.9% of £1560 = £263 , £263/12 = £21 (Apr interest payments)


Have i worked this out right?

16.9%

pinkarsenalprincess

You may not get the APR advertised with the MBNA card. I certainly didn't and when my 0% deal is up it will be 24.9% APR.

You need to be sure that you will make regular payments to clear the debt and won't spend any more on the card or in your overdraft.

lisyloo

MBNA platnium have an offer of 0% cash balance transfer for 14 months but with a 4% fee.

Double check.
I had a letter for my MBNA card.
Balance transfer were 4%. Money transfers were 5%.

But essentailly, yes you are correct, if you can borrow the monye at 0% but 4% then that's bound to be cheaper than 18%.

Be careful to make sure you pay the minimum each month to MBNA.
Either at 0% you still have to make the minimum payment on time.

lisyloo

MBNA platnium have an offer of 0% cash balance transfer for 14 months but with a 4% fee.

Double check.
I had a letter for my MBNA card.
Balance transfer were 4%. Money transfers were 5%.

But essentailly, yes you are correct, if you can borrow the monye at 0% but 4% then that's bound to be cheaper than 18%.

Be careful to make sure you pay the minimum each month to MBNA.
Either at 0% you still have to make the minimum payment on time.