MBNA Fluid

omgimcrap

Hi all
over the years i've been a bit daft with money, (havent we all)
I currently have an HSBC platinum credit card with £3660 on in. For some reason they are charging me 31%APR! i have never gone over my credit limit, never missed or made a late payment on it.....ever.
i've tried a couple of times to get an interest free card previously and never had much luck.
I genuinely dont know why this is. i've never missed a payment on anything in the last 3 years at least.

anyway to the point. i have applied and been given the above card with no interest til june 2015 on balance transfer. the balance is now transfered so i'll be saving £1000's and have it paid off a darn sight quicker.

i also have an overdraft of £1200 which costs me about 15 a month in interest. i can transfer money from my credit card to my current account, also interest free until june 2015 with a 4% fee.

i will almost certainly have the credit card balance paid prior to the end of the interest free period but unlikely to pay the money transfer by then. would probably take another 8-10 months.

question is a simple one. should i use the credit card to get rid of my overdraft?

many thanks in advance

tim

zerog

You could get a new 0% card and transfer the transferred overdraft after the current 0% ends.

omgimcrap

Good point!
I wont be using my HSBC card again so presumably by the time the MBNA one runs out i will look pretty good to creditors having paid off much more than the minimum regularly?

grumbler

omgimcrap wrote: »

...
i also have an overdraft of £1200 which costs me about 15 a month in interest. i can transfer money from my credit card to my current account, also interest free until june 2015 with a 4% fee.

i will almost certainly have the credit card balance paid prior to the end of the interest free period but unlikely to pay the money transfer by then. would probably take another 8-10 months.

question is a simple one. should i use the credit card to get rid of my overdraft?

The starting point is the standard interest rate for your MBNA card that you failed to mention. It's about 16% for you overdraft. Taking into acoount the savings you make before 0% expire, MBNA rate has to be much higher than 16% to make the money transfer not worthwhile. The representative one is just 16.9%.