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  • FIRST POST
    • illuminate
    • By illuminate 10th May 18, 8:49 PM
    • 275Posts
    • 66Thanks
    illuminate
    Recently back in work after 3 months without salary
    • #1
    • 10th May 18, 8:49 PM
    Recently back in work after 3 months without salary 10th May 18 at 8:49 PM
    Putting my finances back in order is proving more awkward than I expected, logistically at least.

    Specifically with 1 of my 4 credit cards...... MBNA

    2 simply froze my account along with interest and any expectancy of payment until my I was back in work and could re-instate the DD.

    The 3rd I maintained payments to by whatever means I had to, as there is a substantial figure on zero %.

    MBNA however ...... they continued to allow my balance to accrue interest and set the missed monthly payments aside as arrears each month. I recently approached them to re-establish my DD, which they we willing to do, but warned me that the first payment would automatically be that months payment PLUS the full arrears. This would be almost 1000 !!!!! Not a sum I can get my hands on as I get back on my feet.

    I asked if I could make a manual monthly payment to prevent the arrears from increasing, but they said any such payment would come of my existing arrears and not my balance. They would then add my monthly payment to my arrears, so in effect I would simply be treading water.

    It seems ridiculous that they have set the arrears to one side as a separate debt rather than simply add it to my existing balance (there is plenty of room). They appear to be able to offer no solution and I'm stuck in limbo, making no progress with the debt and simply getting a mark against my credit rating every month.

    Has anybody else experienced this situation and if so how did you resolve it ?

    Many thanks in advance for any ideas.
Page 1
    • zx81
    • By zx81 10th May 18, 9:04 PM
    • 18,979 Posts
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    zx81
    • #2
    • 10th May 18, 9:04 PM
    • #2
    • 10th May 18, 9:04 PM
    They seem to be doing the right thing in allowing you to focus on the arrears, and agreeing a payment plan for them.

    However it is structured, your credit file will reflect the late payments until you are up to date.
    Last edited by zx81; 10-05-2018 at 9:39 PM.
    • illuminate
    • By illuminate 10th May 18, 10:32 PM
    • 275 Posts
    • 66 Thanks
    illuminate
    • #3
    • 10th May 18, 10:32 PM
    • #3
    • 10th May 18, 10:32 PM
    They seem to be doing the right thing in allowing you to focus on the arrears, and agreeing a payment plan for them.
    Originally posted by zx81
    You are missing the point here ..... every payment I make off my arrears is immediately replaced on my arrears by that months charges on my credit card.
    • Ben8282
    • By Ben8282 11th May 18, 3:50 AM
    • 2,438 Posts
    • 1,122 Thanks
    Ben8282
    • #4
    • 11th May 18, 3:50 AM
    • #4
    • 11th May 18, 3:50 AM
    There is something I don't quite understand here. You say there is plenty of available credit on the MBNA card. Instead of doing what you did, why didn't you take cash advances during your 3 month period of unemployment to make your minimum payments normally? You would have saved yourself a lot of trouble and would have avoided trashing your credit files.
    • zx81
    • By zx81 11th May 18, 5:36 AM
    • 18,979 Posts
    • 20,214 Thanks
    zx81
    • #5
    • 11th May 18, 5:36 AM
    • #5
    • 11th May 18, 5:36 AM
    You are missing the point here ..... every payment I make off my arrears is immediately replaced on my arrears by that months charges on my credit card.
    Originally posted by illuminate
    But that's inevitable. Unless you are clearing the arrears in full, each month' minimum payment will also go unpaid.

    You need to increase your rate of repayment to at least cover the main payment and some of the arrears.

    It sounds as if you would be better defaulting.
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