£117.66 interest - £118 minimum payment

climbingout

Hi There,

I have a Marbles credit card, and around a year ago they informed me they were selling off their finance department and that this may effect my rate of apr, ect.

At the time I was paying off the minimum payment on a debt of £4700, which was around £80 - with around £60 being interest added every month. Now that's terrible, I know. But at least I could tell myself I was chipping away at it, even at £20 a month.

However, over the past year, the company that took over (who I believe is Bank of Scotland?) has raised the apr on retail & cash transactions. Now this didn't happen overnight. First the minimum payment went up to around £110, then then interest snuck up, until they both reached they rate they are now at 33.9%.

Which means that on the bill I got this week. My minimum payment is £118 and £117.64 will be interest next month. I'm effectively paying it off at 36p a month which means it won't be paid off for another *tries to work out the years* To hell with it - that's a long time.

I'm 2 years into a 6 year plan of getting out of debt. As soon as I've paid of my biggest loan I'll redirect the money I was spending on that (£409) toward the marble card and pay it off within a year. But until then its just going to sit there.

I just had to ask. How are the credit people allowed to charge so much interest? No wonder we're in a credit crunch.

dci220

It sucks doesn't it -

May I ask why you haven't trasnferred to a 0% card?

TheEffect

Transfer to a 0% - Pay off £120 a month and you'll be paying exactly that off the ballance owed. 33% is a terrible APR. Switch ASAP.

climbingout

It does indeed suck. I can't get another credit card unfortunately. I was a victim of identity theft and only realized when the card the fraud had in my name ran out and an invoice turned up in the post asking for new payment details for a service I'd never used. I'm still sorting it out. As soon as i get that fixed I'll try applying for another card and though I don't presume anyone will give me a balance of 4K to 0% transfer the existing debt too. Every little helps.

Its just so frustrating though

CLAPTON

do remember the quickest way to pay of several debts is to pay as much as possible on the one with the highest APR and the minimum on the rest.

zx2011

The Marbles card is run by HFC part of HSBC Group.

Your credit card account has been purchased by a company called Aviemore Funding Limited, (AFL). They have a servicing agreement with Bank of Scotland plc, part of the HBOS group, who will issue the cards and answer customers' enquiries on their behalf. The formal transfer will take effect from 22nd February 2009.

http://www.marbles.com/html/aboutthechange.html

From 22th Feb 2009, it seems new customers will be with Bank of Scotland which is now part of Lloyds Banking Group.

M4RKM

One thing you could do, is do what i've done with all my credit cards. Call them up, and just ask them for a lower rate of interest..

i probably could get a new card at 0% but i'm waiting for 2 more months, when my large loan (£413 p/m) is paid off.

However, each card company i've called up has reduced my rate by a few %

but 33.9% is ridiculous, just call them and say barclaycard are offering new cards at 14.9% and what can you do, because i like you as a company, and i'd like to stay

if you don't succeed first, ask to be put through to retentions. You're making money for the bank. They should be able to do something, as long as you've got a good payment history, and not missed/late payments.

M