MBNA is killing me @ 29.9% pa

chattychappy

Keep an eye open for interest increases. If you get a letter jacking up the interest rate even further, then you have the right to reject this if you act quickly. You won't be able to use the card for future spend, but you could use your debit card instead. You would then pay down the remaining balance over time.

Agree with the advice above. I do think it's worth using the eligibility checker. The fact that you have never missed a payment means you'll be off to a good start with your credit history.

foxy-stoat

Try and get a Balance Transfer card - you may not get the full balance but you will reduce the amount of interest you pay.

Also do the PPI information request, a friend of mine got back over £7000 for his PPI on MBNA, when the premium was only £1200.

enthusiasticsaver

Stop using the card first. As your balance rises during the month due to groceries etc which is incredibly high by the way you will be paying more interest. Make a plan to reduce it by a set amount each month and buy groceries etc from the account your pensions go into.

enthusiasticsaver

I don't think you will meet the criteria for getting another card. Is the postal address a PO address or does your post go to a relative/friends address? Whichever you don't have a fixed abode so that will go against you.

enthusiasticsaver

Do you have any savings? You would be best using those to get the debt down.

GSDMum

Just a quick update. I phoned MBNA yesterday and had it confirmed we've had the account since 1994 without any problems (luckily). They confirmed we are an excellent customer.

Spoke to Tom who was very polite, but he couldn't help, he escalated my call and put me through to Rebecca.

Rebecca was also very sympathetic, but couldn't help, so she escalated my call and put me through to Leah.

Leah again was extremely helpful, and also sympathetic to our cause. She suggested we should apply for a new MBNA account with an introductory zero % charge, then swap the debt over to the new card. We explained we couldn't do that because of our situation and their criteria. She said she was unable to drop the APR on our present card.

I told her we weren't happy with the situation and that we might go to the Financial Ombudsman. So she escalated the call to a more senior person. I didn't get the name of this lady (not that it matters) she explained we'd need an official claims number (?) before we could contact the FO, and would need to go through some sort of questionnaire procedure. I gave up at this point, I wasn't getting anywhere. It was all clearly becoming pointless.

Conclusion: Our MBNA cards have been cut up, and MBNA have lost a good customer. I know, and it's so obvious, that Loyalty doesn't matter anymore. They would rather spend a fortune on advertising, letting their Loyal customers subsidise their new business. It is what it is!

Thank you, everyone, for helping me with your solid advice and encouragement. This website is fabulous, and I don't know why I've been so stupid overlooking it. People here are just so nice!

chattychappy

Thanks for the update, but really there are no grounds that I can see for complaint, let alone going to the Ombudsman.

You have freely borrowed at the rate offered. Yes you've been a good customer, but they've been a good credit provider.

You asked them for a reduction - they said no. You aren't entitled to a reduction. If you were unable to meet repayments and are in financial distress, then that's a different matter - they are meant to be sympathetic. But in this case you can meet the repayments but you don't want to pay the price they are charging for their credit (and I can understand why).

Looking at what you spend on groceries, would you consider phoning your supermarket, asking for a price reduction, and then considering making a complaint when they don't comply? Mooring fees?

Nobody likes paying interest, but it's a fee for getting stuff today and paying at some uncertain time in the future.

Don't want to sound harsh, but there you go!

Terry_Towelling

GSDMum wrote: »

Thank you, everyone, for helping me with your solid advice and encouragement. This website is fabulous, and I don't know why I've been so stupid overlooking it. People here are just so nice!

You should see some of the threads and posts on this site - you might change your mind about how nice we all are - but I for one am glad you had a pleasant experience.

How certain are you that your lifestyle precludes getting a card with a promotional 0% BT rate? I still think you should try. Perhaps call MBNA again and say you made a mistake by closing the account and you would like to take them up on THEIR offer of a new account with a 0% BT and transfer the WHOLE balance as ADVISED by THEIR agent Leah. If you couch it in those terms, effectively saying this is what you were offered, it might sway things.

Of course, it may make no difference at all, but nothing ventured...

If you can't get a BT, you might be able to secure a bank loan at a lower rate of interest. It isn't usually recommended that people borrow to pay debt but your situation is different and you are obviously on top of things and not likely to rack up more debt on the credit card once it is cleared.

I understand your lifestyle may also hamper a loan request but don't talk yourself out of applying - there is always a chance.

GSDMum

Of course, you are correct ChattyChappy, I'm still in shock on how high the APR is, and how stupid we are for not being more alert

GSDMum

How certain are you that your lifestyle precludes getting a card with a promotional 0% BT rate?

BT card, that means a bank transfer card right? I'm pretty certain any loan or card would want a utility bill as proof of residence. Most online applications say: choose status, a) own your own property b) renting c) living with parents.

I've discovered our bank, NatWest, will offer us a 3.4% interest loan, but the debt is stopping the loan going through - it's a chicken and egg situation! We do have an overdraft facility of £7k on our current account, we've never used it, and I'm not too sure how that would work out, I'd prefer to stay clear of it. Pensions I'll also not go there.....

It looks like we can't avoid paying the APR, so it's heads down for a couple of years - it's our sackcloth and ashes

Thanks for your advice.