Can anyone thing of a drawback to this plan?

Pheebs67

Soundgirlrocks wrote: »

I have £1132 on it which on their standard APR, a overdraft of £850 and a HSBC card with £250. They are offering me 0% balance transfer to a current account. I have £2300 in savings ( I prefer to have a cushion just in case) I have used m savings to pay off the MBNA card once it has cleared I will request a balance transfer to my current account of £ 2199 which will pay off both the overdraft and the HSBC card, leaving me with £1132 to put back into my savings:j. It will cost me £100 but means I won't be paying interest on the O/D or the HSBC card and the balance of the MBNA card! I'll still have my savings cushion, and my debts will be in one place

But this will cost you £100 to revolve your 'savings' because of BT in fees . . .

Why not, take your £2,300 savings, pay off your OD (reduces your savings pot to £1450), pay off your HSBC card (Further reduces your savings pot to £1200), then pay off your MBNA card (Further reduces your savings pot to £68)

Then, you're debt free (at least the debts you've stated here).

Then, if you want your savings 'back', get yourself a 0% purchase card to 'buy' on . . . (depending on how you currently structure your monthly spends, you could build up a purchase balance for free and stooze the money you would have 'spent' from your current account back in your savings account again just repaying the minimum amount whilst at 0% on purchases)

This way you avoid being charged your BT in fees . . .:)

Enigmatic_Me

Work-Shy wrote: »

BUMP

Does anyone know how and when the 4% fee (£80) is payable? If I want to exploit the 0% period for 7-6 months, will I need to ammend my direct debit mandate to make the minimum payment (I plan to top up as required in order to clear the full balance before November 2011)?

Thanks,

Work-Shy

You need to contact MBNA to change your direct debit from paying the full balance to minimum payment. I have just done the same.