Urgent advice re: MBNA please

cyclura

I was the same with MBNA but I have a 34.9% APR after the 0% finished which was a bit of a kick. I am just throwing any spare cash at it tbh, sell some stuff and clothes you no longer need, do a cleaning job anything to get some extra cash. Once your other debts are paid off throw the money at MBNA it will soon go down trust me, I am now coming up to the £1000 mark :j and I am so glad I did not get a consolidation loan instead.

sharronej

leopardlady wrote: »

No I've had the card for years but it was a balance transfer deal which reverted back to standard rate after the offer period, but I expected it to go back to the previous interest rate not nearly 30%.

Wow that's a bit sneaky of them to say the least - I'd better keep an eye on the bt's I've just done :eek:. Did you look at the snowball calculator? I found it really useful, could you do another transfer onto another card? When I posted a thread last week I got some really good advice including paying for your food on a low rate apr card and paying the cash off the (in your case MBNA) highest apr. I'll try and post the link

https://forums.moneysavingexpert.com/discussion/2827862

Closed explains better than me;

Lets assume you are both able to resist overspending on the cards, and are saving up for Christmas 2011, and car tax due around the same time, and have 2 cards with available credit, one a low apr, one high.

If you put money into a savings account now, it will earn a pitiful amount of interest, and you will be saving away for a year money that could pay off a bit of debt, reducing interest owed all the time.

Alternatively, you could pay off as much as you can from the highest apr cc, and min payment on lowest apr, and then when you need to buy Christmas present, buy them on the cheapest of the 2 cards with credit available - you've saved a whole years interest on whatever you spend.

similarly you can load the low apr card to the max with food/clothes spending etc, and use the saved money to pay off the high apr card. Whatever you pay off becomes available credit should you need it later on, but all the time you are saving interest and shifting high apr to low apr.

Obviously this only works for things you can pay by cc, the tax man prefers cash, but it doesn't stop you from using it in the meantime more effectively with careful planning.

reducing limits is a bad idea, the real answer is to control spending, you might need that credit one day.

I've changed out banking from one single account into three where I pay a set amount of money and have set up snowballing payments to come out automatically. Have you posted an SOA?

goingforward_3

MBNA wouldnt freeze or reduce interest when we asked them (similar figures to yours) but as soon as we entered a DMP with the CCCS they agreed to freeze interest straight away.

leopardlady_2

Thanks for all the replies. Have been to the bank today and they offered loan of £13000 over 7 yrs pay back £23500!!!!!!!!!!!!!!!!:eek: