APR query

LAM2011

Hi everyone, I am trying really hard to get on top of my cc debt and have learnt so much in reading through these posts, like ccard companies being linked and hence I got refused a 0% card.

Anyway I have a HSBC card - owe £990 (credit limit £2000) and an MBNA - owe £3600 (credit limit £3800). The HSBC clearly states my APR is 25.9% on the statement but I cant figure out what it is on MBNA. I am wanting to put my spare cash (approx £200 at the moment) into the credit cards to get rid of them. MBNA only take minimum payment of approx £105 per month and after interest I am only reducing the debt by a few quid.

So do I try and finish the HSBC or do I put it all into the MBNA? I feel like HSBC is more achievable but at the same time I have had the MBNA card so long now and feel like I am never getting on top of the debt and am just throwing money away.

many thanks in advance for your tips / help

ceh209

Hi, for someone to advise we do need to know the APR on the MBNA card. It _has_ to say on your statement, so take a look at your latest one. If it gives a monthly rate, post it on here and someone can convert for you into an annual rate.

Then, although it might not feel like it's the quickest way, you should pay the minimum on the card with the lowest APR and pay all your spare cash to the other one.

LAM2011

hi, thanks for your help.

my credit card statement says monthly interest = 2.5292 % not sure how to work out if that is better or worse than the HSBC one though.

CLAPTON

Startagain wrote: »

hi, thanks for your help.

my credit card statement says monthly interest = 2.5292 % not sure how to work out if that is better or worse than the HSBC one though.

2.5292% per month is about 35% APR

LAM2011

CLAPTON wrote: »

2.5292% per month is about 35% APR

W O W!! Thanks so much for that. So I am definatley just throwing money away paying the min amount each month. Am going to make a concerted effort to pay this off.

I am so glad I found you guys

izools

Startagain wrote: »

W O W!! Thanks so much for that. So I am definatley just throwing money away paying the min amount each month. Am going to make a concerted effort to pay this off.

I am so glad I found you guys

yea, 34.95% APR.

Certainly plough all your spare cash into MBNA and maintain just minimum with HSBC until MBNA is clear.

Also, call HSBC and ask if they have a balance transfer offer available for you - even if it's just at the standard rate, moving over all the MBNA balance you can will save you a notable amount in interest.

Good luck!

CLAPTON

Startagain wrote: »

W O W!! Thanks so much for that. So I am definatley just throwing money away paying the min amount each month. Am going to make a concerted effort to pay this off.

I am so glad I found you guys

yes, best to pay as much as possible on the MBNA card but it's probably better to pay over the minimum on the other too; as whether you only pay the minimum is now reported on your credit reports (probably an extra £5 would be suficient)

LAM2011

CLAPTON wrote: »

yes, best to pay as much as possible on the MBNA card but it's probably better to pay over the minimum on the other too; as whether you only pay the minimum is now reported on your credit reports (probably an extra £5 would be suficient)

I pay about £15 a month more than I have to on the HSBC so will leave it at that and put the extra into the MBNA - will look into the transfer balance. Thanks.

Also I didnt know about the min balance thing on credit reports - I have only being paying the min bal for the last year or more! Perhaps also why I may have been refused a 0% card. I am learning - slowly.