MBNA Personal Loan management

Jas12345

Hello all,  I have a loan term personal loan with MBNA with an outstanding balance amount of £6,700 and 32 months left to complete.

i am paying approx £20 each month for interest and around £217 each month for the repayment.

i would like options to minimise the interest payments each month and perhaps alternative ways to pay the loan off quicker without increasing the monthly’s too much.

i looked into paying via a 0% balance transfer credit card but I don’t believe MBNA accept this.

Any advise would be greatly appreciated 

forwardnotbackwards

You can't use a balance transfer to pay off a loan as that is only card to card. To pay off a loan you can use the money transfer option if your card is offering this - get a settlement figure of the loan  and use the money from the money transfer to pay this off.

But... It all depends on the fee for the transfer and length of the offer if worthwhile. Doubt you will get more than 18 months.

Brie

Agree that it's a money transfer offer that you would need.  And yes you might not get more than 18 months and you might not get an offer with the full amount you need.

So look perhaps to an intermediate step.  What would it do for you if you get £3k for 18 months?  with maybe a 4% fee for the transfer. 

You could only use maybe 95% of the total on a MT so that would be £2850 which with the fee would cost you £2964.  You'd have to pay the minimum payment of perhaps 2%?  This would start at about £60 a month.  Can you afford that on top of what you are paying now?  And assuming you always paid £60 a month for the 18 months you would owe a lump sum of £1884 at the end of the 18 months that you would need to pay off in full or risk paying interest of something like 28%.   Better to pay off over the 18 months perhaps which would be about £165 a month likely will be increasing your monthly payments by too much.

Another alternative is to find something in you budget that allows you to overpay your loan a bit every month and save some interest being charged that way.  This way at least if you have a tight month you won't have made promises of paying money that you can't keep.  

retiredbanker1

OP you say you don't want to increase your monthly repayment by much - but by taking out a new card you will be left with the same repayment on the loan plus at least the minimum on the card?

My suggestion - overpay the loan manually on an ad hoc basis when you have funds available.