balance transfer and penalties

KAV43

hi
appreciate if anyone can help. I have an MBNA card where 0% transfer rate ends in December. I currently owe about £6000 on the MBNA card and pay £350 each month and had planned to pay off a lumpsum or transfer any remaining balance to a new card at the end of December. I am going on maternity leave soon for a year with no income for the last 6 months and dont want to be paying off a huge chunk of money each month when I wont be getting paid. I wondered if it is possible to move the balance from this card where 0% interest runs out in December to a new card with longer transfer fee so I can pay a low amount each month from now until I return to work after a year. is there normally a penalty for doing this? or should i negotiate with MBNA to reduce the monthly payments from now and then transfer in December when the interest free period ends? I am just concerned that my credit rating would be poorer in December as I would not have an income. Would like to hear others experience or advice.
thank you
KAV43

grumbler

KAV43 wrote: »

... I wondered if it is possible to move the balance from this card where 0% interest runs out in December to a new card with longer transfer fee so I can pay a low amount each month from now until I return to work after a year. is there normally a penalty for doing this?

I don't know what "longer transfer fee" is, but you can move without penalties (except the BT fee you pay to the new provider):

• 0% Balance Transfer

or should i negotiate with MBNA to reduce the monthly payments from now

They will not let you. Is £350 a minimum payment on £6000 balance? I checked some random MBNA cards and the minimum payment is 1% plus interest.

and then transfer in December when the interest free period ends?

I am just concerned that my credit rating would be poorer in December as I would not have an income.

Without income you are unlikely to get any card, let alone 0%.

KAV43

thank you for the advice, Grumbler, its really helpful!

point 3 of your reply- good to know so i wont wait to apply for a new card in December

point 2- there was no minimum amount to pay, I agreed the £350/month as it was what i could afford to pay/month but now circumstances have changed.

point1- i realise my post wasn't clear about the balance transfer. What I wanted to know is: I transfered balance from another card to MBNA in September 2012 for 16 months for 0%. if I take out a new card now with e.g. tesco, to transfer the £6000 still outstanding on the MBNA card, will MBNA issue a penalty fee for not waiting to the end of the 16 month period?

grumbler

No, there would be no penalties.

KAV43

thank you! this is most helpful

chattychappy

Agree and I wouldn't even try to negotiate with MBNA. Given the context it could be taken/mistaken for saying you are in distress - which will risk future offers from them. They could even cancel the card.

KAV43

thank you chattychappy, I had not thought about that.

andydgg

why did you negotiate a payment with them? All agreements state that you pay the minimum they ask for every month, everything over that is up to you. I think you should try and pay it all off before you go onto zero pay Don't even try and negotiate with credit card companies, they'll win.

KAV43

thanks for reply andydgg,

I supppose I just wanted to clear the debt within the interest free period, so agreed a higher than minimum amount each month.

andydgg

but that's your choice, unless you've got something in writing they just require you to make the minimum payments as shown on your statements.
I always over-pay.