Can't wait to get out of MBNA trap

densol_2

I am one of those suckers who fell for the MBNA 0% for x months paying £5 back plus interest, and so is my husband. We have no one to blame but ourselves and we still have other cards that we can shuffle so as to keep the rates low ( and not get caught by the 30%+ rates being applied to accounts )

The thing is the debts just get bigger and bigger !! Every time we change a transfer fee is added to the accounts - and I know we should but we only ever pay back the stupid minimum payment !

My dear dad has recently died and we are now going to finally be able to pay off our credit card debts and get out of the MBNA trap forever - and will never have one of these ( or any card) again.

When I read posts about the extortionate rates of interest ( which we have somehow managed to avoid by shuffling ) it makes me very angry that people are effectively trapped by MBNA in this way :mad: .

No real purpose of this post apart from expressing my anger at MBNA and myself over this situation.

Denise

mrcow

Well I wouldn't say that they were exactly "trapping" you. They are giving you a very cheap deal on a short term loan and lots of flexibity at that. By law all their terms and conditions are made very clear on each of their statements and you are able to see exactly how much you have paid off and how much interest you are being charged each month.

They gave you the money that you asked - if you don't pay enough back each month then of course your debt will go up. As you said yourself - only paying the minimum payment is pretty stupid. You can't really blame MBNA for your silly decisions?

oilrag

i dont think he literally means a trap. As we all know theres alot of "vagueness" and "technicalitys" in finance these days. for example many people get caught out with clever wording. my £3100 card with mbna went from 0% to 19% and once it got to 29.9% i was paying £155 per month and only £5 coming off the balance. having complained and getting nothing from them i am very lucky to have parents which paid the card off for me so i can pay a true 155 per month off the balance.

Anyone on these boards that are in debt will more than likely admit to it being thier fault (like myself, I have worked in finance for years!) but the fsa and government are useless for letting finance companies get away with alot.

My advice is ring them and see if they will lower the int rate as they must demonstrate they have tried to help you if you say you are struggling to meet payments. if this doesnt help then try getting a card through your bank with a lower int rate. my bank, hsbc lowered my rate from 18.9% to 4.9% after i called them and works out im payign alot more off the balance.

so much for constructive critisizm mrcow :P

YorkshireBoy

oilrag wrote: »

i was paying £155 per month and only £5 coming off the balance.

Really!?

On 'interest + £5' and a £3,100 balance that's a monthly rate of 150/3100 x 100 = 4.84%.

4.84% monthly equates to 76.33% APR.

You must have ppi (a lot of it!) and/or have racked up more than £3,100 since taking the card out.

skyrider007

I like MBNA. They've been good to me in the past year.

AceCobra1

oilrag wrote: »

my £3100 card with mbna went from 0% to 19% and once it got to 29.9% i

How did it go up to that ? I mean from 0% to 19% sounds like the interest free period of say 12 months is up... understandable... but how did it go upto 29.9%? Did they tell you about it?

alixh7

I totally understand about how the lady feels trapped i have had a Virgin card since november and they have now told me that my rate is going from 15.9% to 29.9%!!I rang and asked if they could do anything with the rate as i needed to help bring my debt down they said no straight away without hesitation!

mrcow

alixh7 wrote: »

I totally understand about how the lady feels trapped i have had a Virgin card since november and they have now told me that my rate is going from 15.9% to 29.9%!!I rang and asked if they could do anything with the rate as i needed to help bring my debt down they said no straight away without hesitation!

Then move the money.

Credit cards should not be used for long term debt. If you can't afford to switch to another card once the 0% deal has worn off or pay the balance off each month, then you shouldn't be using them in the first place.

You are not a victim here.....you are a customer. One who has borrowed money but also one who has choices.

What debt do you have on this credit card at present? Have you looked at alternatives in terms of switching to a 15 month @ 0% deal, or a fixed rate loan or a low apr for life card (eg. M&S card)?

dhassen

mrcow wrote: »

Then move the money.

Credit cards should not be used for long term debt. If you can't afford to switch to another card once the 0% deal has worn off or pay the balance off each month, then you shouldn't be using them in the first place.

You are not a victim here.....you are a customer. One who has borrowed money but also one who has choices.

What debt do you have on this credit card at present? Have you looked at alternatives in terms of switching to a 15 month @ 0% deal, or a fixed rate loan or a low apr for life card (eg. M&S card)?

Some people don't have any choices, actually. If you are unable to get further credit you are 'trapped'. Yes it's up to the person in question to be aware of variable rates etc. but somtimes normal people get stuck with doubleing interest rates and can't move.

I'm one of the strongest backers for the 'if you borrowed it, you pay it back' brigade, but all to often here we get posts that just say 'talk with your feet and leave them' or 'just move the debt'. Somtimes it's not so simple.

mrcow

dhassen wrote: »

but all to often here we get posts that just say 'talk with your feet and leave them' or 'just move the debt'. Somtimes it's not so simple.

But often it is that simple, it's just that people don't look or are not aware at other options that are open to them. You only have to flick through the posts of the DFW boards to see the massive turnarounds and savings that are made once you start applying certain rules and discipline to spending and borrowing habits.

I'm not disagreeing with you that anyone can dealt a bad hand at any time and find circumstance all of a sudden overakes them, but all too often, it's the apathy of the consumer that is the driving force that exacerbates the situation.

Over the years, I've sat down with many family members and friends and have gone through their debt situations and repayment schedules/monthly spending habits, and quite frankly, it's often frightening to see how much money is wasted because people are not taking control of the situation and exercising their options.

Circumstance can make you a victim, but all too often, it's your own attitude and actions (or inactions!) that will end up awarding you that status.

(Sorry if it's too early n the morning for a money saving lecture lol - it's something I fell very passionate about)

clio

We are all pawns in the great big chess game that is credit cards. putting rates up just because they can is like an opening move with your queen - straight in for the KILL.