MBNA - PLEASE HELP! Advice Needed

Pedders18

Hello everyone, what a great website this is!

Anyway, my problem is that I have an MBNA Platinum card and owe about £3k on it. I make a regular payment of between £120 - £150 on it every month, this is the most I can afford to do. The problem is, that I am being charged about £98 in interest every month, so therefore really struggling to make any indent into the outstanding debt.

My credit rating is very average so I cant do a decent balance transfer (that I know about) to a lower rate interest card.

I am really down about it and cant see a way out without just phoning up and telling them that I cant satisfy the debt and will then suffer the consiquences.

PLEASE HELP ME GREAT PEOPLE OF THIS FORUM! :A

CannyJock

Pedders18 wrote: »

Hello everyone, what a great website this is!

Anyway, my problem is that I have an MBNA Platinum card and owe about £3k on it. I make a regular payment of between £120 - £150 on it every month, this is the most I can afford to do. The problem is, that I am being charged about £98 in interest every month, so therefore really struggling to make any indent into the outstanding debt.

My credit rating is very average so I cant do a decent balance transfer (that I know about) to a lower rate interest card.

I am really down about it and cant see a way out without just phoning up and telling them that I cant satisfy the debt and will then suffer the consiquences.

PLEASE HELP ME GREAT PEOPLE OF THIS FORUM! :A

That's about 42% APR? What's the actual APR on the card?

Practically anything is better than that.

Have you looked at your credit report for any adverse data? Missed payments, not on electoral register, ancient cards you thought had been settled etc?

Who do you bank with, what other cards or debts do you have, what have you applied for in the past 12 months?

Pedders18

CannyJock wrote: »

That's about 42% APR? What's the actual APR on the card?

Practically anything is better than that.

Have you looked at your credit report for any adverse data? Missed payments, not on electoral register, ancient cards you thought had been settled etc?

Who do you bank with, what other cards or debts do you have, what have you applied for in the past 12 months?

I have no idea what the APR is, I will call them to find out. I am on the electoral roll, but I split up with my girlfriend whom I owned the house with and now reside at a different address. My credit report has nothing too bad on it just that I owe a few grand on a couple of credit cards, this being the one that hammers me with interest.

In the past 12 months, I have tried to apply for a Virgin card balance transfer and also a loan to pay off the debt, both been rejected as I am renting at the moment, I presume this goes against me when credit scoring.

I am stuck in a rut it feels like!

CannyJock

Pedders18 wrote: »

I have no idea what the APR is, I will call them to find out.

It should be on your statement, or if you can only see the monthly rate, then use this calculator to convert the monthly rate to the annual rate (when compounded). That's your base line for comparing any credit product.

Pedders18 wrote: »

I am on the electoral roll, but I split up with my girlfriend whom I owned the house with and now reside at a different address.

Mail forwarding still in place as an option to continue using that address as you're technically still a home-owner? Or are you on the ER at your new rental address?

Pedders18 wrote: »

My credit report has nothing too bad on it just that I owe a few grand on a couple of credit cards, this being the one that hammers me with interest.

If you list the cards in the format

Name / APR / balance / limit / offers

That'll give the information to see if there's a juggling option that will save you money. When I say "offers" I mean if you've got any promotional offers available to you on your existing cards.

A rough idea of your income will help assess whether you're maxed out on cards.

Pedders18 wrote: »

In the past 12 months, I have tried to apply for a Virgin card balance transfer and also a loan to pay off the debt, both been rejected

Virgin are backed by MBNA and you already have an MBNA card so they've decided that you've got as much from them as possible. Who was the loan with and how much did you apply for? You didn't mention who you bank with and how long you've been with them.

Pedders18 wrote: »

as I am renting at the moment, I presume this goes against me when credit scoring.

Renting won't do you any favours, but it's only part of the picture. Moving around a lot will do more harm than a stable rental.

poddle911

Try to keep your chin up! And definitely try to get all the most up to date information on your credit report and also your credit cards (APRs etc).

Renting isn't necessarily a problem, more the fact that it's a new address and you are more likely to have been refused the BT as Virgin are part of MBNA.

They're a wise lot on these forums, so they'll be plenty more advice coming your way soon!

ETA: Crossed posts! Ditto what CannyJock says!

Pedders18

OK, right, I have all the numbers I need, they have informed me that they cant change the rates that I pay which are 27.9 % on £2897 and 18.9% on £1782 - I owe more than I thought as I am not home at the mo, I just had a guess. I so need to sort my finances out!!

As for the answers to the Q's above:-

Mail forwarding still in place as an option to continue using that address as you're technically still a home-owner? Or are you on the ER at your new rental address? No mail forward, I have just changed my address on all documents to my new address which I have not applied to be on the ER register at yet as only been there for 5 months.

If you list the cards in the format

Name TESCO / APR / balance £3,400 / limit £3,400 / offers - none that I know about or have read about.

That'll give the information to see if there's a juggling option that will save you money. When I say "offers" I mean if you've got any promotional offers available to you on your existing cards.

A rough idea of your income will help assess whether you're maxed out on cards - both cards are maxed out from taking all the hits from moving out into a new place and having to furnish and buy homewares

Virgin are backed by MBNA and you already have an MBNA card so they've decided that you've got as much from them as possible. Who was the loan with and how much did you apply for? You didn't mention who you bank with and how long you've been with them.

I bank with HSBC, been with them for 6 years and I tried to get the loan with Nationwide for £8,000 to clear them.

And I have not moved about much, but my name is still on the mortgage of the house, although I have nothing to do with it. So when a credit check is done, I imagine my names comes up as that as debt but I dont pay that (hope that makes sense!)

Thanks people!

CannyJock

Okay, so

Virgin £2,897 @ 27.9%
Virgin £1,782 @ 18.9%
Tesco £3,400 @ 16.9% (that's their quoted typical rate, yours may be higher)

Unlikely you'll get a single card to take the full £8k.

HSBC have a 15 month 0% offer at the moment, with a 2.9% fee and a 2.5% minimum repayment.

If I were you, I would ask if you can make an appointment to speak to them in-branch about a card application. Take in your Virgin and Tesco statements along with a copy of your credit report to show these are all of your cards and explain that you would like to apply for this card in order to clear the balance and close your existing credit cards. So you're not increasing your available credit or asking for additional credit. You're simply wanting to switch your balance to a reputable company where you've been a valued customer for a number of years and who treat you as an individual not just an account number

You'll be able to explain your circumstances. Now, there's no guarantee that this will give you the result you want, but if you're declined you may stand a better chance of appealing the decision with the assistance of the advisor in-branch who can speak to their underwriters.

You would want to transfer all (or as much as you can depending on the limit you get) of the Virgin balance to your new card. Then all or as much as you can of the Tesco balance to your new card.
You want to make the minimum payments on the Tesco card until the Virgin card is clear.
You would want to make the minimum payments on the HSBC card until the Virgin card is clear.

Once the Virgin card is clear, continue making the minimum repayments on the HSBC card and pay as much as you can against the Tesco card. Whether you actually close the Virgin or Tesco cards is a separate thing - I'd be tempted to leave them with a zero balance and hopefully use them to BT the HSBC balance to when your 15 months is up.

Not being on the electoral register at your new address and only having been there for 5 months is bit of a problem. I'd do this as soon as possible.

Pedders18

CannyJock wrote: »

Okay, so

Virgin £2,897 @ 27.9%
Virgin £1,782 @ 18.9%
Tesco £3,400 @ 16.9% (that's their quoted typical rate, yours may be higher)

Unlikely you'll get a single card to take the full £8k.

HSBC have a 15 month 0% offer at the moment, with a 2.9% fee and a 2.5% minimum repayment.

If I were you, I would ask if you can make an appointment to speak to them in-branch about a card application. Take in your Virgin and Tesco statements and explain that you would like to apply for this card in order to clear the balance and close your existing credit cards. So you're not increasing your available credit or asking for additional credit. You're simply wanting to switch your balance to a reputable company where you've been a valued customer for a number of years and who treat you as an individual not just an account number

You'll be able to explain your circumstances. Now, there's no guarantee that this will give you the result you want, but if you're declined you may stand a better chance of appealing the decision with the assistance of the advisor in-branch who can speak to their underwriters.

You would want to transfer all (or as much as you can depending on the limit you get) of the Virgin balance to your new card. Then all or as much as you can of the Tesco balance to your new card.
You want to make the minimum payments on the Tesco card until the Virgin card is clear.
You would want to make the minimum payments on the HSBC card until the Virgin card is clear.

Once the Virgin card is clear, continue making the minimum repayments on the HSBC card and pay as much as you can against the Tesco card. Whether you actually close the Virgin or Tesco cards is a separate thing - I'd be tempted to leave them with a zero balance and hopefully use them to BT the HSBC balance to when your 15 months is up.

Not being on the electoral register at your new address and only having been there for 5 months is bit of a problem. I'd do this as soon as possible.

Sounds like good advice, I didnt know that you can appeal decisions once made, but I will have a go at arranging an appointment, will a member of the customer service team help or do I need the bank manager? Thanks very much for the help, I will book the appointment now! :beer:

CannyJock

Pedders18 wrote: »

Sounds like good advice, I didnt know that you can appeal decisions once made, but I will have a go at arranging an appointment, will a member of the customer service team help or do I need the bank manager? Thanks very much for the help, I will book the appointment now! :beer:

I'd always ask for an appointment with the manager. If you happen to know his first name, I'd use it when making the call I don't do the tugging of forelocks and bowing, I shake them by the hand and direct them to their office

Always try and get to the top of the food chain and let them delegate it to an advisor. If you adopt the point of view that you're the most important customer they have and project it confidently then it won't do you any harm at all

Last chat I had with a manager was when opening a regular savings account that had to be done in-branch. The person who normally deals with it was on lunch, but I noticed his name badge and asked "Ken, can you not do it for me, it'll only take a minute? I've got all my ID details here on me". Ended up chatting about the property market, credit crunch and the importance of good personal service. And he had only been in that branch for 2 years after moving from LTSB where he'd been for 7 years. He much preferred the new place. And the commute was much easier for him now he doesn't need to go on the M8

Moggles_2

I am on the electoral roll, but I split up with my girlfriend whom I owned the house with and now reside at a different address. I have not applied to be on the ER register at yet as only been there for 5 months.

That's a pity. In that case, you need to enrol at your current address ASAP. It's free after all and everyone's credit rating improves no end once registered. I'd make this a priority.

Your name cannot be added to the ER retrospectively. If you enroll now, public records will show that you've lived at your current address since at least December 2009. (The delay is due to the annual audit in mid-August)

If you type "electoral roll" and the name of your council into google, you'll be directed to the relevant pages on your local authority website. Most include an explanation of how the register is compiled and when your name will appear. Some council websites are set up so you can register online or download a form or you can ring the electoral services department of your local council during business hours.

Pedders18

I just called up my branch, they dont open on a saturday and he said that I dont need an appointment as it is a major branch. He tried to convince me to do it over the phone, is that worth doing as I will struggle to get there during the week as Im always at work.

Cheers CJ, if this master plan doesnt come off, what other suggestions do ya have?