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Massive Increase In Mimimum Credit Card Payment

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http://uk.finance.yahoo.com/news/Millions-forced-pay-bigger-yahoofinanceuk-3204264684.html?x=0

Millions forced to pay bigger credit card bills
If you have an MBNA credit card, and you only make the minimum payments, you are in for a shock.
Specifically, a 'payment shock'. Because your bills are about to rise dramatically.
From 1 April, MBNA is going to increase the minimum amount you can pay off each month to 1% of debt on the card, on top of which any interest and charges will added.
This is no April Fools' joke for MBNA's five million customers. As the Guardian reported this week, it means someone with £2,500 of debt on their card, whose interest rate is a typical 16.9% APR, could see their
monthly payments rise from £37 to £57
. (You can check how your own bill is affected using MBNA's online calculator.)

Another nail in the credit bubble--hang on a bubble only needs one nail and its all over. :o

Has anyone expereinced an elastic stretching bubble that seems to exist outside of a liquid?

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I always pay mine off in full, but if you'd asked me, I would have assumed the minimum payment was at least 5% already. Surely at 1% equates to about 16.9% APR so you never pay it off anyway...???

Can;t believe £20 per month will tip many over the edge tbh

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I always pay mine off in full, but if you'd asked me, I would have assumed the minimum payment was at least 5% already. Surely at 1% equates to about 16.9% APR so you never pay it off anyway...???

Can;t believe £20 per month will tip many over the edge tbh

I think this is an extra 1% on top of interest. Will also sting a bit if you have 25k of credit card debt you have been unable to mew.....

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In the days of yore, MBNA targetted the balance transfer segment aggressively. A number of years ago I transferred a balance of €5K. They gave me a limit of €18K and followed up with some phone calls encouraging me to transfer the whole amount. I declined politely.

I cleared the balance before the interest free period lapsed. Since then I have cleared the card religiously each month. 5 months ago they reduced my limit to €15.5K without warning. It suggests that they are readying themselves for significant levels of default.

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Or maybe they reallocated their resources (1.5k) to someone else who would use it and pay interest. When was the last time you spent up to your limit in a single month?

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Egads! The minimum payment on an MBNA card is going UP to 1%!!!!?

What the hell is it now? I would expect the minimum payment to be 4-5% at least.

my daughters card, when paying the minimum, barely covers the interest.

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my daughters card, when paying the minimum, barely covers the interest.

I s'pose, thinking about it from the point of view of a debt peddler, the interest is all you want them to pay off. If they pay off the principal, that's less interest for you next month.

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Egads! The minimum payment on an MBNA card is going UP to 1%!!!!?

What the hell is it now? I would expect the minimum payment to be 4-5% at least.

As Kilroy mentioned earlier, it's 1% of the balance to be cleared on top of the interest although that is the minimum payment and whose to stop you putting a few quid back on it anyway - and that is key, balances will not reduce.

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Huge increase for the thousands with unmanageable CC debts.

No sympathy for them whatsoever, if you borrow money it is on the understanding that you have to pay it back. Losing sight of this is what has got us into all this trouble.

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Another nail in the credit bubble--hang on a bubble only needs one nail and its all over. :o

Seriously, anyone who does not pay off their credit card every month (emergencies excluded) is officially a moron.

Why do people not just save up the cash and avoid paying over their odds for their spending.....

If you can't afford it you should not buy it.

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I love MBNA - they are always giving me very lengthy interest free periods on purchases.

For example if I spend more than £250 in one transaction before 28 Feb its interest free until December - transactions less than £250 are interest free until September. And these offers keep rolling in all the time - even though I always pay it off on the last possible date before the interest free period ends.

If forcing the bad debtors to pay a bit more helps me continue to get these deals - then bring it on MBNA! :lol:

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I love MBNA - they are always giving me very lengthy interest free periods on purchases.

For example if I spend more than £250 in one transaction before 28 Feb its interest free until December - transactions less than £250 are interest free until September. And these offers keep rolling in all the time - even though I always pay it off on the last possible date before the interest free period ends.

If forcing the bad debtors to pay a bit more helps me continue to get these deals - then bring it on MBNA! :lol:

Any discussion I ever read on credit cards online seems to be filled with people like yourself and others who always pay their balances in full and take advantage of the balance transfer and offers.

Can I ask, is it really worth the effort to gain a few hundred pounds interest free for 2 months? That must be worth about 50p a month at the moment?

SOMEONE must be actually leaving a balance on the card else why would the credit card companies bother! You wouldn't believe as an Internet user though.

The only thing I would find value in is the various consumer insurance and fraud protection, particularly when traveling.

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I can see this tipping quite a few of the reckless spenders over the edge; £30k on credit cards does not seem to be uncommon whenever you read about individuals' debt problems.

I assume nobody on here actually owes on their cards, that's more one for the MSE reckless debtors.

I usually bung then a couple of big cheques a year and so usually am in substantial credit, this is because they're not having a DD off me and I can't be bothered with the admin of dealing with it each month. Does anybody else do this?

I ask because when it (very occasionally) comes up in conversation people have never heard of this, and one chap got into credit on his by accident and they were straight onto him saying he wasn't allowed to have a credit balance and had to spend it within a short period.

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SOMEONE must be actually leaving a balance on the card else why would the credit card companies bother! You wouldn't believe as an Internet user though.

Lots of people certainly do leave balances on their cards (I'm sure you have read dfw on mse) but remember the credit company can sometimes make a profit from those that do repay their balances. Everytime anyone spends on acard the retailer is charged a fee most of this money goes to Visa/Mastecard but some goes back to the credit card company/bank. If these fees exceed the interest costs, any rewards and the administration costs the card can be be profitable for company.

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Looking at the seemingly small monthly sums involved on one card this does look trivial but for people with big CC debts and using cards for basic daily needs this is significant. Throw in a couple of BoE interest rate rises and it's potentially a world of sh!t

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
      • up 2.5%
      • up 5%



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