MBNA interest payments exceed minimum payment

Any

Haroldm wrote: »

I could set up a SO but its their attitude that irks me.

Why should i have the hassle to set to set up another electronic payment system, if i am trying to repay my debt.

TBH I don't understand your attitude. Credit card companies are definitely not perfect, but we all know that when we are borrowing money from them.

Why should you have the hassle? You borrowed the money, when you needed to borrow they were good enough but now when you have to repay you are asking "why should I have the hassle?"?

Why?? Because you want to repay with as little interest incurred as possible. They want you to pay as much interest as possible. This is the game when you borrow money.

Sorry, welcome to the real world.

chattychappy

Haroldm wrote: »

My debt will take 69 months, nearly 6 years to payoff and cost 1281.73 in remaining interest. The fact that their staff don't know this makes them appear like loan sharks.

Not really. Why should they do these calculations for you?

Just imagine if they DID have to give people such forecasts on demand. Interest rates vary, people's spend changes, people miss payments. Next thing: I was misled by my credit card company cos their forecast was wrong and they didn't tell me all the exceptions...

Worse: it would increase compliance costs and reduce the availability of great deals for grown-ups like me.

Cell

Just to confuse things a little more I'm pretty well convinced that my MBNA minimum payment is the previous month's interest plus £5.

Cell

I've taken a look at my last three statements. The proportion of the balance taken as a minimum payment ranges between 1.6 & 1.7%. The balance would reduce by a maximum of £5 a month on that basis as the Monthly interest rate is 1.5274%.

I haven't used the card in over two years, so new spending is not an issue.

EDIT: Worked it out. The minimum payment for April on this card is the amount of interest charged for the March statement plus £5. This works as far back as I care to go.

This means, in theory that the minimum will drop following short months (ie February) in the next statement, but the minimum is related to the interest cahrged in the month before, meaning, theoretically, that your minimum payment will not, on some months, cover the interest.

Is that simple enough? I can give some example later if it would help. That said I'm not sure what regime is being followed here as it doesn't seem to be the same in newly issued cards.