mavine1

Hi all
I have a credit card with MBNA and it has been the bane of my life. I borrowed a set amount and have never borrowed any more and have never missed a payment. Despite that they have hiked and hiked and hiked up the interest rate to a point where now quite frankly it is becoming stressfull. I am currently paying 3 times more each month than what I was 18 months ago. In an ideal world I would like to get the interest frozen and continue making payments from Oz to get the damn thing paid off. What’s the best way to go about this? I certainly don’t intend to run and leave the debt as I may return to the UK at some point in the future and may wish to rent a house or purchase a car on loan and I don’t want it on my conscience. Any advice? Is this something I would be better of negotiating with them here before I go or wait until I get over there? Are they likely to accept a payment plan like this? Just looking for the best solution all round really. For info we have a property to sell but the equity is likely to be diddly squat. My partner is the one with the money and I don’t feel it fair to ask them to pay off my old debt.
Please don’t all get on a band wagon about the morals of moving with debt and leaving it behind. I FULLY INTEND TO PAY IT BACK . But it would make like a lot easier if I wasn’t paying so much interest Thank you all!

knockoff nige

Get your bank to buy the debt and offer you a reduced interest rate on payments over a longer period of time. Or, get a second job and pay it off sooner.

iamthecreaturefromuranus

Can't you just take out another card with a lower interest rate, 0% introductory offer perhaps, and then just move the debt?

paulandcelia

Or get a bank loan for the full amount and get interest fixed. I know they are buggers for being extremely strict on critera but it's another option and you won't get stung when special rate expires xxx months down the line.

killerhales

Check moneysaving expert.com where you will find advice on switching your current credit card debt to a 0% interest card for a year or so. Good luck.

mavine1

Thanks guys....but since I am not working now I can't take out any new credit. Seems I am stuffed with the card and need to focus on getting shot of it. Has anyone taken a debt over and negotiated from over there to pay it off? Possibly with getting the interest frozen?

bingobob777

You can ask them to close the account, that will freeze the interest rate as it stands until it is paid off. You obviously won't be able to use it again.

If you intend returning to the UK do not attempt to negotiate them reducing the minimum payment or total owed, in all likelihood this will count as some sort of default and affect your credit rating in the UK for 6yrs+.

cookem

Obtain a loan or credit card here in Australia. Send the money over there to pay it off. Once the debt is here and not there, you can then have the flexibility to get the 0% finance on a credit card here (balance transfer).

I was trying to pay my credit card in the UK off by sending money back each month. I was getting no where. I then realised I was paying 30% interest. So I got a loan here in Aus, sent the money home, then transferred that loan to a 0% credit card. Was soon paid off.