What to do with MBNA?

BillytheFish_2

I have just had to shuffle my debts around due to an Alliance and Leicester credit card 0% deal running out.

I now have:
£8,344 on a Halifax ONE card (repeat 0% deal until 31st May 2008),
£785 on a Natwest Card (0% until October 2008).

Plus a 0% overdraft of £950,
another 0% overdraft of £1,900
and a Nationwide E-Loan of £1,181.68 at 9.48%

so I'm paying about £9.34 interest per month on £13,440 which isn't bad.

It was a bit of a last minute scrabble around to find 0% deals that would accept me (my credit rating is pretty healthy -although not spotless- but I applied just as the credit crunch hit and had trouble getting accepted for credit cards. Those that accepted me only gave me small amounts of credit).

I'm trying to get myself organised for March/May next year when I'm going to have to transfer the 0% £950 overdraft and the Halifax £8,334.

My question is; I still have the previous Alliance and Leicester credit card with a credit limit of £10,000. Should I keep that card and hope for a repeat deal in March/May or should I close the account and try for another MBNA card (ie. Virgin)?

Or should I do something else?

YorkshireBoy

MBNA are known to give good repeat deals, and often at 0%. Also, they've had a good few fee-free days recently so hopefully those will continue.

I'd keep the card open, and especially if the account was well managed, and hope for a deal come next Spring. We don't know how much longer the credit crunch will last, so closing the card may not get you a similar credit limit on Virgin next year.

In your situation I'd take the hit of interest on the £950 overdraft in March/April/May and delay my repeat deal request until the end of April so as to maximise the 0% duration on your largest debt...the Halifax card.

Good luck.

keeperbear

BillytheFish wrote: »

I now have:
£8,344 on a Halifax ONE card (repeat 0% deal until 31st May 2008),
£785 on a Natwest Card (0% until October 2008).
Plus a 0% overdraft of £950,
another 0% overdraft of £1,900
and a Nationwide E-Loan of £1,181.68 at 9.48%
Or should I do something else?

How about paying off some of your debt before you run out of 0% deals?

BillytheFish_2

Thanks YorkshireBoy, that makes sense. I think I'll do that then and wait until May.

keeperbear wrote: »

How about paying off some of your debt before you run out of 0% deals?

I'm trying! I haven't been out much, I can't remember the last time I bought any new clothes (probably 2005?) and I'm really trying to cut back on other things. I'm throwing every spare penny at the e-Loan as that's my only interest attracting debt at the moment. That should be paid off by the time the overdraft starts attracting interest and so I'll then start pouring as much as I can into that. At the rate I'm paying off, I'll be debt free in 1.76 years...