MBNA minimum pyt

woodybuzz

First timer here - so please be gentle!

Just received a letter from MBNA saying my minimum payment is to go up from 2% to 5% a month - an increase of about £400 a month!

Any suggestions, I doubt I will be able to get a loan for the £11k required to get these vulture off my back, so anyhelp or suggestions are appreciated.

Help!

GeorgeUK

Suggestions:

Post up a statement of affairs so we can see if there's anywhere you can save money
http://www.makesenseofcards.com/soacalc.html

If you haven't had late payments etc your credit history should be ok. If you haven't had more than 3 credit checks in the last 6 months, you could try applying for a 0% balance transfer card. If you can get the Virgin money card, you can BT to your current account so there will not be a conflict with card providers (£25 min payment 2nd-15th months).

Phone up MBNA and ask if this figure can be reduced.

woodybuzz

Thanks for info but I can't see me getting a cc with a limit to enable me to transfer the whole lot. No matter how my SOA will look, you will not be able to shave £400 of it.

I don't think my credit history is that bad but getting an £11k loan over 5 years still means an increase on my outgoings!

They sent me a box of chocolates yesterday for my birthday (seriously) and then I get this letter today!

GeorgeUK

2 things

1. I never got chocolates - why?
2. I would never suggest getting a loan. If you can get this Creditcard you may get only half the limit required, but even that would be enough to bring the monthly payments down to what you are currently paying.

Savings elsewhere would just allow you to clear the debt quicker.

Bismarck

woodybuzz wrote: »

First timer here - so please be gentle!

Just received a letter from MBNA saying my minimum payment is to go up from 2% to 5% a month - an increase of about £400 a month!

Any suggestions, I doubt I will be able to get a loan for the £11k required to get these vulture off my back, so anyhelp or suggestions are appreciated.

Help!

I hope for your sake you've mis-interpreted what they've said....you'll be in good company if you have....

briefly...your minimum payment will most likely be the

LESSER of

5%

or

interest plus charges plus £5 or £10 or £25 depending on your particular card....

I'd be surprised if it a fixed 5% regardless and I'll eat some humble pie...please re-check your T&Cs...

tsharp

I got this letter the other day, coinciding with the end of my 0% period. Luckily we had the cash for it in a savings account and paid it off, but it would be a serious b!tch if we had to pay 5% (£100ish) instead of the minimum £25 each month!

They're the only CC that does this as far as i know...

woodybuzz

Phew - thanks Bismarck your'e right :T - interest plus £10! I would be sunk without your advice! (pun intended!)

I guess they will up the interest rates next month!

We have considered a DMP but have a couple of loans fininshing in a couple of years which should sort us out. How do DMPs woork with loans if you leave the DMP?

If I say owed £6k on a loan and after 2 yrs came off the DMP and owed £2k would I need to re-negotiate the loan or just start making repayments at the same APR befor the DMP came into being? I can see how it works with CCs but loans (and overdrafts) don't quite seem to follow the same logic.

Bismarck

woodybuzz wrote: »

Phew - thanks Bismarck your'e right :T - interest plus £10! I would be sunk without your advice! (pun intended!)

I guess they will up the interest rates next month!

We have considered a DMP but have a couple of loans fininshing in a couple of years which should sort us out. How do DMPs woork with loans if you leave the DMP?

If I say owed £6k on a loan and after 2 yrs came off the DMP and owed £2k would I need to re-negotiate the loan or just start making repayments at the same APR befor the DMP came into being? I can see how it works with CCs but loans (and overdrafts) don't quite seem to follow the same logic.

you're welcome....an interest hike is probably on its way, I'm afraid...do you have any other cards you could transfer the balances to?

for stuff on DMPs you probably need to go to the Debt free wannabee board...