Advice re: paying off an amount on credit card.

Shankly81

I have an MBNA card with about 3300 on it. It was from a couple of balance transfer amounts so I am paying it off interest free for now. I also have 650 on my HSBC card. I currently have approx 1500 spare to pay off some of credit card. Question is : do I pay off the 650 balance and the remainder off the MBNA card or do I transfer the balance to MBNA and then pay off 1500 from the MBNA? It may seem obvious to pay off the HSBC to avoid the balance transfer fee but I am thinking about the 0% on the MBNA which will run out in the next 4-5 months. Paying a bigger chunk of that has to be a good idea?

Any thoughts are welcome.

[Deleted User]

If the HSBC balance is charging interest, pay that.

Shankly81

Thanks for th reply. It is charging interest. I am thinking of paying that off , then some of the other one. Checking the balance rates it looks like I have a couple of different 0% times for MBNA. One until June 2020 ( the original, larger transfer) and one for August 2018 (a smaller one) so I have time to go n the 0% rates which is good.

StopIt

Although your situation is quite simple (Pay the interest paying debt, then the shortest 0% deal), I'll post this link for those who may see this with multiple interest paying CC debts.


http://www.stoozing.com/calculator/snowball-calculator.php


It'll help tell you which debts to pay off quicker to minimise interest.

chattychappy

Agree, pay HSBC.

Shankly81 wrote: »

Thanks for th reply. It is charging interest. I am thinking of paying that off , then some of the other one. Checking the balance rates it looks like I have a couple of different 0% times for MBNA. One until June 2020 ( the original, larger transfer) and one for August 2018 (a smaller one) so I have time to go n the 0% rates which is good.

Check on your MBNA statements that payments you have been making have been reducing the earliest expiring 0% balance first. If not, or you cannot be sure, then send the £850 a day or so after the first 0% balance expires. You will pay a couple of days' interest (which will be peanuts), but then you can be sure the payment will go to the correct balance (because of the negative hierarchy.)

molerat

MBNA will allocate to the earliest starting offer, not necessarily the earliest ending.

Shankly81

molerat wrote: »

MBNA will allocate to the earliest starting offer, not necessarily the earliest ending.

So, this will be taken off the transfer with the 2020 finishing date? That was as I expected.

mourning

Pay the HSBC card.

Use the MSE Credit Club, Noddle or Clearscore to see what offers are available to get another 0% balance transfer offer (if you don't feel the balance will be cleared in the next few months)

Shankly81

I’ve got the ability to move to a Barclaycard I’ve never yet used. They keep sending me offers to do a balance transfer to them. So, theoretically I could move some or all of the MBNA amount to Barclaycard at some point in the future if they offer a good deal.

PeacefulWaters

Why have a username that is an unpleasant football chant?

Shankly81

Because he is one of my all-time football heroes and that was the year he died. It’s a sign of respect from myself. I had it as my Twitter handle for years and was followed by his granddaughter (Karen Gill) so I don’t think she had a problem with it.