CC debt and Balance Transfer confusion

C

Cowzer

Guest
Hi,

The usual credit card debt story, I’m afraid, hoping you can help with my balance transfer confusion.

I was approved a few months ago for a second credit card (from MBNA), with a credit limit of 10,000 and a 1.9% balance transfer (six months) offer. Why didn’t I shop around for a 0% offer? Because I’m plain stupid.

I immediately transferred 5,000 from the first credit card to the MBNA card, but then made the fatal mistake of spending another 4,000 on the MBNA card. I’m now aware of just how stupid and costly this was, having failed (again, stupidly) to read the terms and conditions properly.

Since then I have been able to put 2,000 back in to the MBNA account (not a loan luckily, money I was due), which leaves it like this:

MBNA card –

5,000 owed on balance transfer (about three months to go)
2,000 owed on purchases
3,000 left for another balance transfer???

I still owe 2,500 on the first card, but I’m completely confused now about what I can do with the second card.

Is that 3,000 still available to me to do another balance transfer from the first card?

The interest on the first card is higher than the MBNA card, but obviously the interest on the MBNA purchases is highest of all (can’t remember the exact figure, but it’s scary).

Can any one advise me on the best course of action here, what should I tackle first? I’m completely confused.

Thanks for your help.
 
Ring up MBNA and ask them for a balance transfer; you won't get it interest free but it will be only 1-2% for up to 6 months.

I have been with MBNA for over 3 years now and they are always offering low-interest balance transfers. The most recent deal they offered was up to end of October 2006 and when I wanted to transfer a balance of €6000 in August, they agreed to extend this until February 2007 (full 6 months).

They want your money so they are usually willing to do this. However you will not be able to transfer a balance right up to your credit limit. They will want to leave a minimum gap of €500, I think.

One other thing, you are probably aware, it is only the balance transfers which are low interest; any normal purchases are charged the normal rates
 
Why don't you look for 0% transfer option now and transfer whichever is costing you the most? By the way, you can apply to MBNA for a new card and they'll give you the cheap rate. I've done this in the past and they have no problem with it.
 
Thank you both, really appreciate the replies. Will see what I can sort out with MBNA and what other options are available. Fortunately I'll be in a much healthier situation in 4-6 weeks (ie payment due for job nearly done) and hopefully :)o ) I won't get in to this level of mess again. Thanks again.
 
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