Mbna Money Transfer

tiddlydoo

Hi,

I have debts of £5,500 spaced over three credit cards. I have just got an offer from my Mbna card (no debt on this one!) for a life of balance money transfer at 4.9% and no handling fee!!!!

I was going to use this offer and put £5,500 in my bank then pay off the three credit cards leaving me with just one debt to Mbna.

My question is what would the interest be on this debt be per month? And would the interest go down each month as I pay off the debt. I am looking to pay £150 per month off it.

Thanks for any help xxx

[Deleted User]

The minimum payment will be 1% of capital plus fees and interest. So the interest will be around 0.4% per month.

The interest will decline in line with the balance.

tiddlydoo

So if I was only going to pay the minimum payment it would be roughly £55 per month plus 0.4% interest, would that be about another £20 a month?

[Deleted User]

Thereabouts, for the first month.

tiddlydoo

Thanks very much zx81, much appreciated xx

kindlefirebabe

Check what the deal is on balance transfers first.

tiddlydoo

Hi, sorry what do you mean check what the deal is?

YorkshireBoy

tiddlydoo wrote: »

Hi, sorry what do you mean check what the deal is?

A 0% BT and small BT fee may work out cheaper than the 4.9% MT over your likely repayment period. Was there also a BT available on special rates, or just the MT?

tiddlydoo

Hi YorkshireBoy,

In my MNBA accountI have four offers:

BT 4.9% life of balance, no handling fee
BT 0.0% till December 2017 with a 3.5% handling fee
MT 4.9% life of balance, ho handling fee.
MT 0.0% till December 2017 with a 4% handling fee.

I was thinking of going with the MT 4.9% life of balance, not sure what to do now. I was going to sort it out tomorrow. I am able to pay between £150 min or £200 max per month, any help would be appreciated, I'm a bit clueless really!

YorkshireBoy

The MT deal you're considering will take 40 months to repay at £150 a month, and incur total interest charges of around £458.

Taking the 0% BT deal would cost you £192.50 now, plus any 0% BT fee* in December 2017 to get the remaining balance of around £3,300 transferred to another 0% BT card.

If there was a 3% BT fee in 2017, this would be £99, so provided your next BT deal lasts at least 24 months the total cost this way is £291.50, representing a saving of (£458 - £291.50 £166.50 over the 40 months.

So do you want peace of mind? Or a potential cost saving?


* 0% BT fee cards are available now, although there's no guarantee they'll be available in late 2017 of course! Speaking of which, why haven't you tried for one now?


Several useful calculators here...

http://www.stoozing.com/calculator/

tiddlydoo

Thanks so much for all the info YorkshireBoy!

I think when you see the words 0% and life of balance you think you are getting a bargain but by your figures I would be much better going for the 0% BT with the fee.

When December 2017 comes around I will see what my finances are like, might be a lottery milionaire by then *chuckles*.

I suppose why i haven't bothered applying for any more credit cards is because I've already got four, three too many! I know if credit cards are used senisbly they can be a good thing. i just think another credit card another debt.

Once again, many thanks xxx