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Advice required

We may be making a large purchase using HP over 60 months at 7.9%. We are wondering if we use a MBNA card at 4.9% to pay more on the deposit. This extra would have been part of the balance on the HP part with interest at 7.9%. We would then pay off the card over 36 or more months. Would we be saving anything or is it preferable not to use the CC for this purpose? The MBNA CC would only be sued for this purpose.
I hope the above is clear as I am no financial genius. Thanks for any advice.

Comments

  • pvt
    pvt Posts: 1,433 Forumite
    Surfer wrote: »
    We may be making a large purchase using HP over 60 months at 7.9%. We are wondering if we use a MBNA card at 4.9% to pay more on the deposit. This extra would have been part of the balance on the HP part with interest at 7.9%. We would then pay off the card over 36 or more months. Would we be saving anything or is it preferable not to use the CC for this purpose? The MBNA CC would only be sued for this purpose.
    I hope the above is clear as I am no financial genius. Thanks for any advice.

    Yes, you would be better off. And you would have the added benefit of section 75 cover from MBNA.

    But are you sure the MBNA rate will stay at 4.9% for 3 years? It is a very low rate for a CC.
    Optimists see a glass half full :)
    Pessimists see a glass half empty :(
    Engineers just see a glass twice the size it needed to be :D
  • Surfer
    Surfer Posts: 361 Forumite
    pvt wrote: »
    Yes, you would be better off. And you would have the added benefit of section 75 cover from MBNA.

    But are you sure the MBNA rate will stay at 4.9% for 3 years? It is a very low rate for a CC.
    Apparently it will if you use it within the first 60 days after activation. I can't remember if it is 36 months or longer.
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