minimum payment and reduced interest

whatdoidonow

Hi
My first post, so sorry if this has been covered.

I ran up £10k on my MBNA card, trying to emegrate to NZ... no joy there.
I noticed after a few months that even though I hadnt spent since that the balance was increasing. I always thought that you paid the interest + a few quid off the balance, aparently not. I rang them and although they didnt direclty answer my question about the above, when I told them that £190 per month was too much they put me on a lower interest rate and my payment is now £145 per month,(thank you mbna) but still increasing about £5 per month if making the minimum payment.

Can I claim back the extra interest I had been paying? After all I didnt have to twist their arm to get a lower rate!

Why is the debt still increasing?

Cant get another 0%er as I have one already again through trying to get out of this coutry!

Looking forward to trying the reclaiming bank charges advice.

thanks in advance for any advice

Bloke_with_a_simple_life

HEllo What

Question or two:
1. are you charged late fees or over limit fees?
2. what is your credit limit?
3. what are the interest rates you are being charged?
4. are your repayments posted to your account by the due date every month?
5. how much do you repay every month? Just the minimum payment? Plase provide some examples of the amounts.

Assuming that yuo are making no further transactions on the card (e.g. no purchases or cash transactions) and you pay the min payment every month and the payment is posted on or before the "due date" the assumption is that the balance should never go up!

Thank you.

whatdoidonow

Hey bloke, sorry for the delay,

1. are you charged late fees or over limit fees?

cant see any.... I have never been over limit and always paid DD

2. what is your credit limit?
£12700

3. what are the interest rates you are being charged?

as far back as I have records i.e. 2003 I was charged 1.5976% and after complaining I am now on 1.2408% which on a balance of £10750 is a difference of £43 per month!

4. are your repayments posted to your account by the due date every month?

yep they all seem to be DD'd the day before.

5. how much do you repay every month? Just the minimum payment? Plase provide some examples of the amounts.

having looked at the statements I can find there are these instances;
sept 04: bal 6118.28, pmt.£95.33, int charged. £96.2 est int, 99.46, new bal £6119.19 min due, 101.24.

jan06: bal 6048.21, pmt.100.26, int. 104.66,est int, 92.02, new bal 6052.61, min due, 109.66

aug 06, bal 10768.89, pmt, 169.05, int charged, 169.40, est int, 186.36, new bal, 10769.24, min due 174.40,

these statements show no purchases on those months, also some other statments the remaining bal does go down.

from sept I then had the new rate hurrah!... but why did I have to ask for it??? poor customer service at least???

thanks for looking!

mintymoneysaver

Your minimum payment for some strange reason appears to be lower than the interest due. You should always try to make more than the minimum repayment anywy.

whatdoidonow

indeed it is, maybe another call to them is in order?

I had left the account up to the direct debit which, I thought should always pay the interest+ a little off the balance?

looking at this months statment, estimated interest is £135.58 yet the minimum payment via DD is £132.03! ... another increase!