Quick Query

marco_79

Hi,

I have looked at stoozing in the past but never actually acted on it.

This morning i got a call from MBNA with whom i have had a credit card for nearly 10 years. It has no balance on it and a £15300 credit limit.

The guy offered to pay 95% of my limit into my current account - £14535

The deal 9 months at 0% and a one off fee of £50.

Looked at martins article and i could transfer all this into his top instant access savings account at 6.41%, this would make me almost £500 in 9 months.

My question

Can i set up the direct debit from the savings account to cover the minimum repayments, if not what's the best way of doing it?

Thanks

marco

YorkshireBoy

The ICICI savings account doesn't support DD's.

Your first min payment will be £55, with subsequent min payments being around £5-25 depending on your own T&C's. Hopefully you can meet these from income (with a DD set up on your current account), rather than raiding to the stooz pot each month?

Remember, MBNA special offers end on your STATEMENT date...not your payment due, or any other date.

MBNA are great aren't they.

marco_79

Hi yorkshire boy

How do you get the repayments to be so low, i was thinking they would be about £250-£300. That i couldn't afford from my normal income.

YorkshireBoy

marco_79 wrote: »

How do you get the repayments to be so low

Take a look at your T&C's, or those on the MBNA website. Look for the word "lesser" or "least", but basically there are two options...

3% of the balance

or

fees + interest + PPI + £5

...and they use the "lesser" of these.

£50 BT fee + £5 = £55

Subsequently £5 (because the fee has been and gone!).

marco_79

Right yorkshire boy let me get this straight.

3% of balance is £436.05

or

fees = £0 interest = £0 ppi = £0 + £5

Therefore the £5 is the lower amount so that is what i pay, that right?

YorkshireBoy

1st statement will show a £14,585 balance (£14,535 + £50)

Min pay is either 3% of this (£437.55) or BT fee + £5 (£55)...so you pay £55

Second statement will show a £14,530 balance (£14,585 - £55)

Min pay is either 3% of this (£435.90) or £5*...therefore you pay £5

Clear?

* Check your own T&C's as yours may be £5/10/25 etc.