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  • FIRST POST
    • smurph1981
    • By smurph1981 9th Apr 18, 3:53 PM
    • 3Posts
    • 0Thanks
    smurph1981
    Credit card help required
    • #1
    • 9th Apr 18, 3:53 PM
    Credit card help required 9th Apr 18 at 3:53 PM
    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.
Page 1
    • Geht fit
    • By Geht fit 9th Apr 18, 4:21 PM
    • 28 Posts
    • 14 Thanks
    Geht fit
    • #2
    • 9th Apr 18, 4:21 PM
    • #2
    • 9th Apr 18, 4:21 PM
    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
    • By Geht fit 9th Apr 18, 4:33 PM
    • 28 Posts
    • 14 Thanks
    Geht fit
    • #3
    • 9th Apr 18, 4:33 PM
    • #3
    • 9th Apr 18, 4:33 PM
    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
    • By Ben8282 10th Apr 18, 2:15 AM
    • 2,408 Posts
    • 1,103 Thanks
    Ben8282
    • #4
    • 10th Apr 18, 2:15 AM
    • #4
    • 10th Apr 18, 2:15 AM
    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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