MBNA (Balance Transfer Payment Order)

nau05224

Hello all,
I have a MBNA card with 5 different balance transfers on it (for various reasons).  I have no issue month-to-month paying it off and put in what I can extra to reduce payments.  I looked at the start of the year as I knew some of the end dates were approaching in 2021.  When checked, I had the following as per the payments table in my statement:

14/12/2021   £3,200.00 

04/07/2021   £1,000.00 

25/08/2021   £900.00 

22/06/2021   £600.00 

24/04/2022   £2,000.00 

I checked but can't seem to pay off the amount for June 21 before December 21 or re-arrange the payment distribution?  Is this the case.  I was told it was due to the order the offers were taken?  Anyone any thoughts?  I can't do the £3200 straight away (followed by the outstanding).  Has anyone changed this order before and worth another try with them?  Thanks. 

[Deleted User]

MNBA say they allocate payments in the order of highest interest first so in theory they should put payments to the June one first but I have this niggling suspicion they might be the one that does payments in order of when the BT was done not when they end. Easiest way to check though is look at the last payment cycle and see which balance went down. Or pay £500 onto it and see if they do June or not.
https://www.mbna.co.uk/understanding-credit/understanding-transfers/balance-transfers.html

nau05224

Hi Farfetch,
Thanks for the info.  It appears to just be off the top of the list ... so the £3,200 first.  They are all on 0% offers currently, no no interest priority!
When I called before, the person I spoke to said the only real way to deal with it is let the offer expire, phone up a couple days later (when interest is being paid technically) and make a one-off payment (ASAP to avoid waiting a months' interest etc).  
The other way is obviously balance transfer across an amount elsewhere but just trying to reduce any additional costs.  I can do this, but would prefer not to move the 3000 first - and would still have to let the June amount expire to pay off.  Some maths and a good calendar will get me there without too much issue but just wondering if anyone had managed to re-allocate something similar?
Thanks.

[Deleted User]

Problem is that you get billed for interest on the whole outstanding balance so it's not ideal.
I'd hazard a guess you'd struggle to get a new BT card with that much debt unless you have a huge salary but it's worth a gamble and transfer what you can - even if it was £3000 that went on the first transfer you can still reduce the overall debt and minimise interest

molerat

I assume that is the order the offers were taken. Paying off first taken offers is how MBNA work, if you look at your statements it will show which balance has been decreasing. The only way is to wait until the offer expires and pay it off (or BT it out).  Even if you BT now it will move the first offer.  It would likely have been the best plan to pay the minimum and keep anything you had spare safe until needed when the offers finished.  How much cash will you be able to come up with on those Jun/Jul/Aug dates ?

zzyzx1221

Deleted_User said:

Problem is that you get billed for interest on the whole outstanding balance so it's not ideal.
I'd hazard a guess you'd struggle to get a new BT card with that much debt unless you have a huge salary but it's worth a gamble and transfer what you can - even if it was £3000 that went on the first transfer you can still reduce the overall debt and minimise interest

What do you mean by "get billed interest on the whole outstanding balance"?

If they let the June BT revert to an interest-paying balance they'd only be paying interest on the £600 of that balance, not the entire balance on the card, which wouldn't really be much for a couple of days.

[Deleted User]

zzyzx1221 said:

Deleted_User said:

Problem is that you get billed for interest on the whole outstanding balance so it's not ideal.
I'd hazard a guess you'd struggle to get a new BT card with that much debt unless you have a huge salary but it's worth a gamble and transfer what you can - even if it was £3000 that went on the first transfer you can still reduce the overall debt and minimise interest

What do you mean by "get billed interest on the whole outstanding balance"?

If they let the June BT revert to an interest-paying balance they'd only be paying interest on the £600 of that balance, not the entire balance on the card, which wouldn't really be much for a couple of days.

Yes - the interest charge on the full £600 until it's cleared (and then £1000 after 4th July etc etc)

nau05224

Hi All,
I think i've been able to work out how to carry it out without too much issue so will end up just with the December BT left and still being to pay it off.  BT set to minimum for the next payments and the spare accumulative (and money I can get by then) will pay off enough when I allow the initial offers to expire and pay off a couple days later.
If all else fails, I do have access to my main card that has a BT limit of £4K but obviously want to avoid this in the first instance for fees etc. and would still be left with a sum to pay before the Jun BT finishes, but works out OK as per the above plan.
Haven't found any way to change the actual stated payment dates as per original query.
Will come back and update once some of the BT's have expired.  Thanks.