Going to make MBNA an offer - advice plz.

baikal

After getting my head out of the sand, I am going to ask MBNA for some help.:o
I currently only pay the min amount of 144.00 a month and cannot afford to pay anymore.
Do you think asking them to stop putting interest on and except a payment of 83.34 a month for the next year is too much to ask.
Is it worth a try or do I really have to take that dmp offer which I really don't want to.
I have already got 17.50 a month back from a pp on a personal loan, the extra 70.00 odd a month extra could really help me here all in.

Tixy

Hi Baikal and welcome

Is MBNA your only unsecured debt? If you ask a creditor to accept a lower payment than the minimum they will almost always expect to see an income & expenditure account to show how much you have coming in and what you are spending it on and that therefore you can only afford the reduced amount you are offering. They would also expect all unsecured creditors to be treated the same, so if you were keeping up with your minimums to other creditors and only paying them less they will be far less likely to accept your offer then if you are asking everyone to accept less.

Have you worked out an income & expenditure yet? Is this where you get the £83.34 from? If not then you need to do this and I recommend this form as it reminds you to include everything - http://www.makesenseofcards.com/soacalc.html

Even if they accept a reduced payment and agree to freeze interest it is quite likely that they will still place a default on your credit report which will remain in place for 6years and could affect your credit rating.

You mention a DMP offer -can you give some more info? Have you considered setting up a DMP and what organisation have you been getting advice from?

baikal

It was a waste of time asking MBNA for help.
They just put me through to a secured loan company.
I have no secured loans on the house and will never do so.
Payplan say it will be around 4.7 years to pay it all off but I will have a little extra money in my pocket.
I will go on the DMP, and when I get my promised pay rise put that towards the debt so it will be paid off faster.

Thanks.