2.3k Loan, 6k cards, advice?

noirenex

Heya, very useful website and I'm looking for a clever and cost effective way to clear off my debts, I've got the following:

Credit rating: Fair (Not on electoral role brought it down, recently moved house)

2k Overdraft (Currently costing me nothing, I graduated and have student account)
2.3k Loan, 8.9% (More on this in a moment)
3k MBNA card, 5.9% for life deal (3.8k limit)
3k Barclaycard (17 months 0%, ends July 2012) (5.8k limit)

Now, I recently put the 3k on the MBNA card to reduce the interest I'm paying on the loan (At a cost of 1.5%), (The loan was 5.3k), which has reduced the term by 2 years, what I'm considering:

Moving 2k from the MBNA card onto the barclaycard to take advantage of 0% until July 2012 (2.9% Fee), doing a money transfer from the MBNA card (1.5% fee) of 2.3k, clearing loan off completely.

This would leave me with the 2k overdraft @ 0% (2 years i believe form lloyds), 5.8k @ 0% until July 2012, and 3.3k @ 5.9% for life,

Does this seem like a good plan? I mean, ideally I would have paid the loan off directly from the card to avoid the 1.5% fee for the money transfer, but I don't have a CC for purchases @ 0%, and I'm not sure it would be 0% if I pay off the loan?

So, any advice would be appreciated? I'm not in crisis or anything, I'm just after a way to save more money

BugsyBrowne

noirenex wrote: »

Heya, very useful website and I'm looking for a clever and cost effective way to clear off my debts, I've got the following:

Credit rating: Fair (Not on electoral role brought it down, recently moved house)

2k Overdraft (Currently costing me nothing, I graduated and have student account)
2.3k Loan, 8.9% (More on this in a moment)
3k MBNA card, 5.9% for life deal (3.8k limit)
3k Barclaycard (17 months 0%, ends July 2012) (5.8k limit)

Now, I recently put the 3k on the MBNA card to reduce the interest I'm paying on the loan (At a cost of 1.5%), (The loan was 5.3k), which has reduced the term by 2 years, what I'm considering:

Moving 2k from the MBNA card onto the barclaycard to take advantage of 0% until July 2012 (2.9% Fee), doing a money transfer from the MBNA card (1.5% fee) of 2.3k, clearing loan off completely.

This would leave me with the 2k overdraft @ 0% (2 years i believe form lloyds), 5.8k @ 0% until July 2012, and 3.3k @ 5.9% for life,

Does this seem like a good plan? I mean, ideally I would have paid the loan off directly from the card to avoid the 1.5% fee for the money transfer, but I don't have a CC for purchases @ 0%, and I'm not sure it would be 0% if I pay off the loan?

So, any advice would be appreciated? I'm not in crisis or anything, I'm just after a way to save more money

Someone will be along shortly to give advice.
With no missed/late payments your credit profile is better than fair..

yorkshire-lad

It does sound like you have got it sorted to be honest:).

At the end of the day, you have a loan at 8.9%, so if you have all your debts spread out over a 0% and 5.9% Card you should be making savings.
Make sure you get no late/missed payments then you will improve your cc,then if you don't get the cards paid off you can transfer to another 0% card.

If the OD is 0% don't worry about that for now. I'd say if you find any surplus cash chuck it at the highest % debt first.

Good luck
YL