Yet anothe Balance Transfer Question

bananakinz

Hello, new poster alert! Although I have been reading for a while, and have taken a few steps to get our debt and bills under control

We have a few credit cards, which are now manageable as below:

Halifax 4.9 % LOB £5,090
Tesco (just coming to end of 0%) £2,850
Morgan Stanley (again nearly at end of 0%) £1,750

Hubby has just applied for an MBNA card at 0% 2% BT fee and received today in the post.

We've also received an email from Egg offerring 5.9% LOB, no BT fee.

I can't work out the best way to rearrange the finances as both the new offers seem pretty good. We are currently paying about £300 per month across the cards.

What would you suggest?

CLAPTON

what credit limits do the cards have?

how long is the 0% for and what will the APR be after that

try putting the figures in the snowball calculator

http://www.whatsthecost.com/snowball.aspx

bananakinz

The MBNA limit is £12,500 :eek: 0% til Nov 7
The Egg is £6,900
Tescos is £3,500
Morgan Stanley £3,500

I think that we should leave the Halifax where it is, as thats such a good rate, move the Tesco and Morgan Stanley to the MBNA, but that'll have a £100 BT fee, concentrate on the Halifax debt and then see what offers are out there in a years time maybe ...

chun831

I think you are correct transfer the TESCO and MS keep Halifax.

I bet the TESCO and Morgan Stanley interest rates are about to go pretty high so pay off those first. If you put them onto the MS card even if it is only 6 months at 0% you are bringing down you balance.

Also at 4.9% LOB on the Halifax you have at least one fixed figure around which you can budget - something solid when all other things are variable

bananakinz

Right, we have BT to MBNA 0% til next Nov

Which card should we be hitting with our repayments each month as we've been having a bit of a debate about it?

I say the Halifax as we're paying interest on it, hubby says the 0% one as Halifax interest is LOB

Any opinions?

chun831

Sorry been away on my hols.

IMO I belive your hubby is correct - pay of the 0% one as quick as you can as it will not be 0% for ever (and then will go pretty high I would wager.)
Keep the Halifax one as a stable one as I believe interest rates will go up again soon!