Should I move Credit Cards?

Ciwan

Can you elaborate on MBNA route please? How would taking another Credit Card with MBNA help my situation? I'm confused

Candyapple

Did you read the article? You take out a new card for a specific purpose, in this case, money transfer, and hope that your new limit is large enough to cover the amount you owe (in your case you would need minimum £5k limit) and then if you are successful in getting a new card, you call them up and ask to do a money transfer for £xx amount. This amount goes into your bank account. You then use the £2k to clear your overdraft and the other £2k to pay off your credit card. Once you’ve done this, you need to set up a direct debit to MBNA to pay off the minimum payment monthly. So based on my maths, assuming you managed to get £5k limit with MBNA;

£4151 needed for money transfer = £82.60 fee
This fee would be added onto your final balance
You would need to repay £176.40 monthly to clear your balance within the 24 month period.

Or you could make the minimum repayment which would be roughly £40 per month, but the problem with this is, you would need to repay the entire balance at the end of the 24 month period otherwise you will end up paying interest on the balance. The 24 month period is interest free so the initial £82 fee means you are no longer subject to paying monthly overdraft fees or credit card interest. It’s best to use this time wisely to sort out your finances and possibly close your overdraft facility so you don’t find yourself in this situation again.

grumbler

Ciwan wrote: »

Sorry I confused the Credit Card APR for the Current Silver Account.

According to this, it is 17.9% APR (variable) and 17.95% p.a. (variable)

'This' is a representative APR.
Yours can be different and is clearly shown on your statements.

It makes no sense to borrow @19.94% +£6 p.m. if you can borrow at £17.9%.
If so, stop using your overdraft and if it's unavoidable use your CC instead. And if this 'privilege' is the only one you use, downgrade your account to a free one as advised above.

Ciwan

Thanks Candy I see what you mean now!

I just did the MBNA eligibility check, and said I would like 5K and would transfer 4.5K, but got refused.

You're right Grumbler, I'm going to my local branch on Saturday to downgrade.