Balance Transfer Advice

daniel_9

Hi Everyone!

Been a member on here for a while and do have a good read of all the Threads daily, although I have only ever posted once before.

I had my LBM on the 15th of May this year and things have been great ever since. I know exaclty what my incomings and outgoings are, when all my bills are due and what my money is being spent on (something I have been wanting for years!). I owe most of this to Microsoft Money, its absolutely brilliant, as well as the advice I read on here.

Anyway...onto the question: My debts are listed in my signature below, however, there are two Debts which I would like to tackle before everything else (because of the interest rates).

MBNA Card - currently @ £4,981.30
Marbles Card - currently @ £610.24

Now one of the reasons I got in the mess I am in is "consolodation loans" didn't close the cards and spent on them again. So....baring in mind that my lesson HAS been learned and I WILL NOT rack up any more debt my question is...

I have just received a Barclays Platinum card with a £5,000 credit limit on it. 0% Balance Transfer for 14 months with a 2.5% transfer fee. I'm chuffed.

Now I would like to know what people think I should do with this £5,000 Any Advice?

My initial thoughts are:

1. Balance Transfer the Marbles Card (£610.24 + £15.26 fee = £625.50)
2. Balance Transfer some of the MBNA Card (£3,750 + £93.75 fee = £3,843.75)

That would give my new 0% interest card a balance of £4,469.24 leaving £1,231.30 left on the MBNA Card.

I then need to:

3. Close the Marbles Card - do I wait a month or so (any advantages re: credit rating?).
4. Throwe everything at the remaining £1,231.30 on the MBNA Card then close this account also.

I also got stung with my last Balance Transfer (2 years ago) when I spent on the card, and have now learned this is a big no no as it is no longer 0% when you do this.

I think the above is a good plan, but would appreciate anyone elses thoughts on it? Is there anything else I need to be aware\carefull of other than ensuring I close the Marbles and MBNA accounts and do not spend on the new or old cards?

Many thanks!

x

daniel_9

Had to edit the amounts as I'm only allowed to transfer a maxium of 90% of my available credit on the new card, oh well!

meyore

I'd just transfer as much of MBNA to it as possible and then pay off the amounts left on the 2 expensive cards. I can see where you're coming from, trying to keep the number of cards in use to the minimum, but would it not just be more hassle doing 2 transfers?
Maybe its just me being lazy but as it isn't going to make any difference either way ultimately its up to you...

daniel_9

Cheers meyore - I think my logic behind clearing off the smaller debt is more the "feel good factor" of tackling another debt. The interest rates are the same, so I'm guessing financially it doesn't make much difference.

I'm in the middle at the moment - more off the MBNA card or clear the smaller debt, decisions decisions!

meyore

If its going to make you feel better then go for it as thats the only difference it'll make.

I'm just lazy like I said-too much like hard work for me!