We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

MBNA Problem - Where do i go now?

Hi,

This is my first post on this message board so plase be friendly!

Basically, i moved into my first house at the beginning of 2008 with my Girlfriend.

With all new bills and a mortgage to pay, i have slipped behind on my 2 MBNA cards. I continue to pay my mortgage and all household bills and also keep up payments on my other 3 cards.

I have made an odd payment to MBNA where i can, but now they are really pestering me (obviously!). I owe them about £15k.

I started getting calls from the usual suspects like Aegis and whoever else they use to pressure you. I had read plenty of advice on here so just ignored the calls. They still continue.

I have sent a couple of letters to MBNA asking for them to freeze interest and to reduce my minimum payments which are about £170 on each card. I haven't received anything back.

This has been going on for about 4 months.

I received a letter about a month ago stating that they were about to begin 'Default and Termination Proceedings'. I ignored it.

I came home yesterday to receive a letter from MBNA stating the following:

Dear Sir,

Potential Commencement Of Legal Proceedings.

If you do not contact our office within 7 working days of this letter so we can set a reduced repayment plan, we may recommend that our solicitors commence legal action. This would result in a CCJ being registered against you.

And then one of the following actions:

1. Your employer being ordered by the court to make deductions from your salary through an attachment of earnings.

2. A baliff being instructed following the issue of a warrant of execution to place a levy and recover goods that you own to the value of the ammount you owe.

3. A charge being placed on your property which could result in any available funds being distributed to MBNA following the sale of your property.

Do not ignore this letter. Contact us immediately.

Yours Sincerley,

XXXXXXX

Now, this letter was sent 2nd class, so the 7 days have already passed which is a bit ridiculous. I haven't received any calls from MBNA as far as i am aware, and at no time have any letters been sent recorded delivery.

Now, i know this can't continue and i want to come to a solution. I can probably afford to pay them £50 a month. That is obvioulsy about £300 under what they are demanding. Because of interest i am now about £500 over my credit limit on one card, and £200 on the other.

I will leave it there for now and see what you guys have to say.

Feel free to ask any questions.

Your help is much appreciated.

Comments

  • My Credit Card debt is about £25k.

    My annual salary is about £24k.

    I/We decided it would be a good idea to decorate and do everything we had to to the new house. That is now complete. We have a lovely house but a big debt!
  • worried_jim
    worried_jim Posts: 11,631 Forumite
    10,000 Posts Combo Breaker
    have a look at http://www.payplan.com/ they really helped me with mbna- very similar situation and don't charge, in fact probably the best thing i did in 2008. good luck.

    Have a look here for information http://www.moneysavingexpert.com/loa...help-plan#help then do a Statement of Account so we can see what the full situation is.

    http://www.makesenseofcards.com/soacalc.html
  • Thanx worried jim.

    bushtea - When we first starting using the cards to do the house up and pay for other bits, the interest was minimal. They have now upped it to around 35% which we didn't plan for.
  • Hi Mr XYZ123.

    Welcome to MSE
    Lovely user name if I may say so :T
    Easy to remember.
    Does not give much away.
    In order to be friendly I will not say anything about your debt. :eek: :eek: :eek:
    I hope you will get sympathy and good advice from other users.
    Have a nice day!
    ...............................I have put my clock back....... Kcolc ym
  • Is there anyway you can get it under the credit limit. I'm sure they would be much more compliant if it looked like you were showing willing.
    Do whatever you can not to get the CCJ!!
    Got Halifax Classic to reduce my interest rate by 5% woohoo - 10/06/08 Thanks MSE!
    Another 3% shaved off 10/12/08
    ANOTHER 4 % June 09:beer:
  • I have been reading up and it sounds like it is just a computer generated letter.

    I am about to set up a direct debit to pay £25 off each card each month. That's the max i can pay with all other out goings. I'm thinking it is much more important to pay the mortgage and all other household related bills then my credit cards at this present time.
  • aj2703
    aj2703 Posts: 876 Forumite
    In order to be friendly I will not say anything about your debt.

    So you come on these forums to make unfriendly comments about people's debt..?. Here's an unfriendly comment directly at you ~Kn*bhead~
  • Anyone else with some advice?
  • Put your shiny new house up for sale and pay your debts?
    On that scale they could easily make you bankrupt.
  • badly managed debt to be honest, you should have used a loan for 'home improvements'

    Your in the wrong forum, go over to the debt free forum and repost there, they will help you more!
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 346.7K Banking & Borrowing
  • 251.4K Reduce Debt & Boost Income
  • 451.4K Spending & Discounts
  • 238.9K Work, Benefits & Business
  • 614.3K Mortgages, Homes & Bills
  • 174.8K Life & Family
  • 252.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.