MBNA card balance to Personal Loan

Clive_Woody

jasminehope said:

Dobbibill said:

jasminehope said:

hey everyone - hope you're all doing fine during this difficult time.

So I have an MBNA credit card with a balance of £4k @ 28% Annual APR.
I currently pay £200 a month to pay it off. I think at this rate I'm expecting to completely finish paying in about 24 months.

However, I have seen the Post Office Personal Loan, with a 90% chance of getting a 3.3% rate. I know that there's a chance that I may have to pay a higher rate of interest once it gets approved. My credit score is Good, got no payment defaults, and i keep up with all my payments.

Surely it would be better to consolidate the MBNA credit card debt with a personal loan so I pay less interest at the end of the day? (I would still pay off the personal loan within 24 months by overpaying each month)

What do you all think, because I really want your opinions as I'm not the best at calculating savings 

Thank you so much and stay safe y'alll!

Hi jasminehope - welcome to the forum

The first thing you need to do is look at the reason you have £4k on a Credit Card - you want to make sure you can prevent it happening again in the future.

You don't say what the payments would be on the personal loan - are they more than £200 per month. How long would you be paying the loan and what would the payments be? Will this be shorter than 2yrs? Can you pay more than £200 per month?

The good side to having credit card debt vs a loan with a fixed payment is you can pay the minimum on a credit card if you struggle one month.

Have you looked at a BT card to shift the debt to 0%? (remember to factor in the fee in your calculations)

Thank you for your reply!

So the calculator with the personal loan says a monthly repayment of £237.58 at 8.9 APR rep. for 18 months. In my current financial situation, my income has been stable and I'd be paying this comfortably. I can pay more than £200 per month. The thing is I don't like the idea of minimum payments because then you can easily prolong the time it takes to pay it off, with more interest adding up each month. 

I'll take on a balance transfer card thank you!

If you can afford to pay more than £200/month then increase your monthly payments on your credit card (and stop any new spending on it)/ This will mean you pay it off sooner and pay less interest.

jasminehope

Hey I'm considering it - I sent an application - just waiting now. Thank you everyone for helping me out! 

jasminehope

Dobbibill said:

jasminehope said:

hey everyone - hope you're all doing fine during this difficult time.

So I have an MBNA credit card with a balance of £4k @ 28% Annual APR.
I currently pay £200 a month to pay it off. I think at this rate I'm expecting to completely finish paying in about 24 months.

However, I have seen the Post Office Personal Loan, with a 90% chance of getting a 3.3% rate. I know that there's a chance that I may have to pay a higher rate of interest once it gets approved. My credit score is Good, got no payment defaults, and i keep up with all my payments.

Surely it would be better to consolidate the MBNA credit card debt with a personal loan so I pay less interest at the end of the day? (I would still pay off the personal loan within 24 months by overpaying each month)

What do you all think, because I really want your opinions as I'm not the best at calculating savings 

Thank you so much and stay safe y'alll!

Hi jasminehope - welcome to the forum

The first thing you need to do is look at the reason you have £4k on a Credit Card - you want to make sure you can prevent it happening again in the future.

You don't say what the payments would be on the personal loan - are they more than £200 per month. How long would you be paying the loan and what would the payments be? Will this be shorter than 2yrs? Can you pay more than £200 per month?

The good side to having credit card debt vs a loan with a fixed payment is you can pay the minimum on a credit card if you struggle one month.

Have you looked at a BT card to shift the debt to 0%? (remember to factor in the fee in your calculations)

Hey just an update!

I got accepted for a balance transfer card!

Thank you everyone for your replies!


Sorry for bombarding the other forum!

CRISPIANNE3

jasminehope said:

Dobbibill said:

jasminehope said:

hey everyone - hope you're all doing fine during this difficult time.

So I have an MBNA credit card with a balance of £4k @ 28% Annual APR.
I currently pay £200 a month to pay it off. I think at this rate I'm expecting to completely finish paying in about 24 months.

However, I have seen the Post Office Personal Loan, with a 90% chance of getting a 3.3% rate. I know that there's a chance that I may have to pay a higher rate of interest once it gets approved. My credit score is Good, got no payment defaults, and i keep up with all my payments.

Surely it would be better to consolidate the MBNA credit card debt with a personal loan so I pay less interest at the end of the day? (I would still pay off the personal loan within 24 months by overpaying each month)

What do you all think, because I really want your opinions as I'm not the best at calculating savings 

Thank you so much and stay safe y'alll!

Hi jasminehope - welcome to the forum

The first thing you need to do is look at the reason you have £4k on a Credit Card - you want to make sure you can prevent it happening again in the future.

You don't say what the payments would be on the personal loan - are they more than £200 per month. How long would you be paying the loan and what would the payments be? Will this be shorter than 2yrs? Can you pay more than £200 per month?

The good side to having credit card debt vs a loan with a fixed payment is you can pay the minimum on a credit card if you struggle one month.

Have you looked at a BT card to shift the debt to 0%? (remember to factor in the fee in your calculations)

Hey just an update!

I got accepted for a balance transfer card!

Thank you everyone for your replies!


Sorry for bombarding the other forum!

Worth remembering for the future that MBNA will allow you to swap cards to one that may suit you better. I have done this with Lloyds Bank and Halifax and never paid any interest.