Credit card help required

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smurph1981
smurph1981 Posts: 3 Newbie
in Stoozing: free cash from credit cards
Hi,
I owe £8763 on two credit cards, Barclaycard and MBNA.
My minimum repayments are currently £135 and £45 respectively.

I've had an offer from MBNA of a money transfer at a rate of 4.9%pa until April 2022.

I'm considering doing a money transfer of £8763 into my current account and using those funds to 'pay off' the two credit cards - leaving £8763 owing with MBNA at the 4.9%pa rate.

The problem is that I don't know if I would be better off monthly if I did this.

Please can someone offer me some advice?

I don't want to go ahead with this if I will be worse off as money is tight.

Thanks in anticipation.

Comments

  • Geht_fit
    Geht_fit Posts: 33 Forumite
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    Could you provide more detail? How much do you owe on each card? What is the APR? There are some (many) more savvy on here, but from a quick check online:

    £8763...48 months... 4.9%...
    £201.41 monthly repayment
    £904.68 interest paid

    I suspect there are cheaper ways to clear that debt, so more info would be helpful. :)
  • Geht_fit
    Geht_fit Posts: 33 Forumite
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    Have you considered a 0% Balance transfer card instead?

    If you were keen on a fixed term loan, I've had positive personal experience with Zopa.

    They're currently offering a competitive rate:

    £8800...4 years... 2.9%...
    £194.40 monthly repayment
    £530.72 interest paid

    £8800...5 years... 2.9%...
    £157.74 monthly repayment
    £663.80 interest paid

    I also like them because you can repay early at no extra cost:
    "Unlike other loan providers, at Zopa early repayment fees simply do not exist. You can repay early, or in lump sums, at no extra cost. Because Zopa calculate the interest on your loan on a daily basis, this means you can reduce the total amount you would repay."

    It would really be preferable to have the details of the cards though, as there might be a better way yet.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    Combo Breaker First Post Newshound!
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    Do you actually have in excess of £8763 available credit on the MBNA card? If yes, go ahead. A 4.9% APR is sure to be better than whatever standard rate of interest you are currently paying.
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