Mbna min payment change!!!!!!

iceage3

Hello mse users

had my letter today min changes

dont you love mbna has they are scaring people with high balances
look at there examples on there card you got with letter

old new

statement 2500 2500
interest rate 16.9 16.9
interest 32.74 32.74
principal 5.00 25.00
min payment 37.74 57.74

a £20 jack up ON MIN PAYMENT ,it will kill most people

its worse for £5000!!!!!!

will all the cards be doing this?

[Deleted User]

Yes and no. The new rules didn't demand that min payments be changed for existing customers, just for new. But you;ll obviously find this on any new cards you take out.

On the one hand, it's the right thing to do as the low min payments is what led people to get into a lot of trouble. On the other, when people are already in a stretched situation, it can be dangerous.

Rochdale_Guy

Deleted_User wrote: »

Yes and no. The new rules didn't demand that min payments be changed for existing customers, just for new. But you;ll obviously find this on any new cards you take out.

On the one hand, it's the right thing to do as the low min payments is what led people to get into a lot of trouble. On the other, when people are already in a stretched situation, it can be dangerous.

I'm an existing customer and they are changing for me. This is the noose that will finish me....

I owe £4,339 at 29% APR, which means they are taking the minimum monthly amount by d/debit which is around £100, but the interest is MORE than the minimum payment so that's £105 each month so my balance INCREASES each month.

After using the calculator on their website, from 1st April they will now be taking £140 a month - which I just do NOT have.

I'm scuppered, this is sooooooooo depressing, plus my MINT Visa will be going up from 18% to 20% also from 1st April.They currently take £133 a month, but at least the interest isn't as high as the MBNA

Life is NOT good....

SnowTiger

iceage3 wrote: »

Hello mse users

had my letter today min changes

dont you love mbna has they are scaring people with high balances
look at there examples on there card you got with letter

old new

statement 2500 2500
interest rate 16.9 16.9
interest 32.74 32.74
principal 5.00 25.00
min payment 37.74 57.74

a £20 jack up ON MIN PAYMENT ,it will kill most people

Hmmm, it would take you 41 years to pay off £2,500 at £5 a month.

Can you reject this increase as you can an interest rate rise?

babyfruitella

I got a letter but didnt really understand it. My current balance is just shy of £1500, minimum payments are around £42 a month. I take it i'm going to end up paying more a month on the minimum now?

ETA: Just found the online calculator, & indeed my payments will rise by approx £10 a month.

Is it just me or does anyone else think MBNA's minimum payment is extortionate anyway??

babyfruitella

And yes, as PP can this be rejected? When Halifax changed their rates, I closed my account with an outstanding balance & now just make my payments each month with interest only being accrued at the old interest rate.

izools

IMHO if a debtor can't afford to pay off a credit card balance over the course of 100 months without problems, they clearly owe far too much for their income and should absolutely be on a reduced payment plan where interest is waived and credit affected with an Arrangement to Pay indicator.

Anyone who owes more than they can afford to repay over 100 months should not be allowed to pay so little and still have their account reported as up to date on their credit file. Clearly they are struggling and this should be reflected on their files with an AP marker. IMHO.

Paul_Herring

babyfruitella wrote: »

Is it just me or does anyone else think MBNA's minimum payment is extortionate anyway??

Not at all. The interest rate might be, but not the minimum payment.

Credit card's shouldn't (in general) be used for long term loans to begin with, and if paying it off every month isn't (yet) an option, you should be paying more than the minimum anyway.

If you're having problems with even the minimum payments, it's an indication that your debts are becoming unaffordable.

opinions4u

To be honest, I'd welcome a rule that the minimum payment on a credit card was 5% of the outstanding balance or total interest plus insurances plus £25 (whichever's the greater).

The banks would make less money and the customers would be less willing to crank their debt up.

Debt isn't a good place to be.

dunstonh

Is it just me or does anyone else think MBNA's minimum payment is extortionate anyway??

Not even close. It should have been higher years ago. At its lower level it just allowed people to go off on spending sprees and rack up debt which they couldnt afford.

The increase is not significant and if you cant afford it then it highlights what a bad situation you are in and that you should perhaps start considering other options.

Rochdale_Guy

dunstonh wrote: »

Not even close. It should have been higher years ago. At its lower level it just allowed people to go off on spending sprees and rack up debt which they couldnt afford.

The increase is not significant and if you cant afford it then it highlights what a bad situation you are in and that you should perhaps start considering other options.

EDIT: Learn to bite tongue.....

So why do the people who need help the most get shafted with higher rate % APRs and have they're existing minimum monthly repayments hiked up?

I agree, the pathetic 2-3% minimum monthly repayments that have been around for donkeys years are WRONG, but whats done is done. Good luck to people getting their first shiny new credit cards, and may they never be in debt like I am, but for some it's a line that cannot be crossed again, we've gone too far over it!

No one seems to understand how much say a 5.9% APR fixed for life deal would benefit me..... can anyone else even comprehend paying £100 a month back only to see that they're charging you £105 (and rising) interest alone? Even 0% over the next 12 months is a lifesaver, means putting the £1,200 that MBNA are charging me in INTEREST alone would clear my CitiBank card (OPUS) then still have £200 to pay off on another card.... I can but dream.

Don't shoot me down, I know so many of you have already kindly shown me where to go and what to do.... it's the principal....