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Minimum Payment question

LiquidStool
LiquidStool Posts: 89 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 12 December 2018 at 10:30AM in Credit cards
Hi all

My 0% deal runs out in the next 3 months so am looking for a move, I've several credit cards, with smallish balances that i'd like to move to the current MBNA 48 months @ 4.8% offer

I'm looking to move a total of £10500 to this card. The minimum payment here is 1% of the balance + interest (4.9%) Can somebody tell me what the monthly payment would be please.

I currently have £38,000 credit available to me on existing cards but this would be a new card and according to Experian, have a 95% chance of getting this card. Happy to provide more info if it helps, thanks all.

I also came across a virgin deal 30 months @ 0% but apparently have a zero chance of getting it. Why would that be? I do have a virgin cc but paid off the balance about 6 months ago, never missed a payment etc. Is it simply because I already have a virgin card that it's not being offered to me? IS it worth getting rid of a couple of cards now that they have zero balances?

Comments

  • The minimum payment would be in the region of £150 at the beginning.

    Whether you should close cards depends on what cards you have, the limits and balances and your income - as well as you credit history.
  • Thanks ZX81. That's a bit higher than i was expecting... Maybe i'll transfer the entire £10500 to an existing card with a shorter 0% offer rather than apply for a new one. Could you tell me the monthly minimum on a £10500, 0% interest transfer where the minimum payment is 2.25% of the balance? (zero balance). Thanks for your help in advance :-)
  • About £235.

    You just need to calculate the min payment as a % of the balance.

    The lowest you'll get is 1% plus fees and interest, which on a 0% card would be a straight 1% - £105.

  • You just need to calculate the min payment as a % of the balance.

    What's the formula for doing that? Sorry, crap at maths :'(

    £105 per month on a 10500 balance? Much more palatable!
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    £10,5000 * 2.25% = £236.25

    What was the balance at the start of the 0% BT rate?
  • Thanks foxy-stoat
    foxy-stoat wrote: »
    £10,5000 * 2.25% = £236.25

    What was the balance at the start of the 0% BT rate?
    So i just multiply the balance by the minimum payment percentage?

    Balance is/will be zero before transferring
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Thanks foxy-stoat So i just multiply the balance by the minimum payment percentage?

    Balance is/will be zero before transferring

    Yes, the low interest deals ( the ones I have ) are generally 1% + interest, the 0% deals are 2-2.5% minimum monthly payments.

    I meant what was the original BT amount, ie how much have you paid off in the 0% period?
  • foxy-stoat wrote: »
    I meant what was the original BT amount, ie how much have you paid off in the 0% period?

    Not made the transfer yet. I meant the card to which i will transfer to has a zero balance, the amount to be transferred will be 10400, thanks.
  • toshi
    toshi Posts: 308 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    You can make a simulation as much as you like.

    Credit Card Calculator
    http://www.whatsthecost.com/creditCard.aspx

    For fix amount repayment for your own planning, obviously you need to meet the minimum payment requirement at very least imposed by the credit card company.
    http://www.whatsthecost.com/loan.aspx

    The below is for stoozing but it may be useful if you set gross saving interest as 0%.
    http://www.whatsthecost.com/stoozing.aspx

    Mr Martin Lewis helps us to use a practical Budget Planner as well, make a reasonable plan for debt repayment. Hope you will get the best deal (0% transfer etc) to pay less interest. Good luck :)
    https://www.moneysavingexpert.com/banking/Budget-planning/
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