MBNA raises rate, no reason - Page 2

Tree0164 · #21 (**permalink**) 05-14-2005, 03:08 AM

Jean
I know you have been working this really hard. Can you pick up an extra night at work to see if that will help. Maybe that will help DH get into reality. Can you make up a posterboard with your debt and somehow if maybe if it is sitting in the kitchen with him he will understand. Dave Ramsey has great advice and there are a lot of unsupportive spouses out there. I wish I had more advice for you but am fairly lucky that my DH seems to be on the same playing field.

Have you gotten any good offers in the mail lately about transferring balances? I would pick up on those in a heartrate. Or you do have another credit card that has a bit of wiggle worm to play the balance transfer game.

singinjeannie · #22 (**permalink**) 05-14-2005, 06:31 AM

My DH has been given specific information on the budget, current debt, monthly payments, etc. We just have trouble coming up with a time for us to meet regularly on the budget, and he feels that if we can't make a commitment to meeting regularly, then there's no sense spending money on a Financial class. We don't meet only because there's just very little time. We are constantly running and when the day is over, it's usually about 10:00 or 10:30 at night. Neither one of us wants to get paper, pencil and calculator out at that time of the night when our brains are already drained.

I have applied for two different credit cards to try to cover the MBNA mess. The balance on the MBNA is huge, so I have to use several different cards to surf the amount. This is really going to create a mess for the budget.

Thanks again, MBNA.

-Jean

tamip · #23 (**permalink**) 05-23-2005, 05:35 PM

You are trying soooo hard- I feel your pain! I have MBNA as well, but we only use it for gas and pay it off monthly.

What helped us initially to get ahold of our finances, was tracking our spending for at least a month. Write down every penny you spend, literally. You might be amazed at where you find leaks. After we did this, it gave us a clear picture of what we were spending on what, and we could make a budget that we could live with.

It was hard to get hubby on the same page, but now we battle it as a team, and it's great! We question every purchase, or expense- it's great, and you can make it fun too!

Good luck!

Tami

singinjeannie · #24 (**permalink**) 05-24-2005, 04:33 AM

You're right, Tami. We've been writing everything down for about 8 months, now, and have found lots of ways to cut back. We've also been keeping all these expenses on Micorsoft Money to further understand the balance of where the cash goes.

DH is on board with this (sort-of) but feels resentful, for some reason, when I ask him where his cash went. It's wierd. I guess it's a power thing.

I was able to figure out a way to get all of MBNA transferred to other credit cards and will write my last payment to them EVER this month. Haa Hee Haa Hee!

Can't wait to write them a "get lost forever" letter.

Funny thing, though, was that for the first time, when I tried to open another CC to transfer some of the debt, I got a denial letter! You know you're in trouble when you get a denial letter. I didn't even care, though, because I know I've now made the correct changes and we'll never be in this position again.

-Jean

jmjj215 · #25 (**permalink**) 05-24-2005, 07:07 AM

Alright! Aufwiedersehen MBNA.

singinjeannie · #26 (**permalink**) 05-24-2005, 07:22 AM

Wow! I didn't know anyone knew how to spell that word!

Trust me -- I'm very excited. I've re-written the debt snowball and am raring to go. Can't wait to say "Aufwiedersehen" to all my CC companies. (Be a while before that happens, though.)

-Jean

tamip · #27 (**permalink**) 05-24-2005, 08:01 AM

Yeah, it took my husband awhile. We took a financial class through our church, and he really didn't take well to someone else telling him how to spend his money. I think it's harder for men, it's a pride thing. Sounds like you've been at this for a while; does hubby see that it's working? Doesn't he feel a little better that things are getting paid off. What got me was "being a slave" to debt, and that's exactly what we are until it's all paid off.

About 2 years ago, we had 21k of cc debt, and no savings. Now, we're down to 4k, with a long term savings account and a short term savings account. By September, barring any catastrophies, we should be making our last payment! I can't wait! This will be our first time with zero cc debt. Once that's paid, we'll put that money towards paying off our car. And, boy howdy, will we be doing the happy dance!!!

Hang in there!!
Tami

jmjj215 · #28 (**permalink**) 05-24-2005, 10:22 AM

Quote:

And, boy howdy, will we be doing the happy dance!!!

Tamip, you made me laugh out loud.

Tree0164 · #29 (**permalink**) 05-25-2005, 04:50 AM

Tami you are doing great!! Awesome job!

Happy dances and the financial peace that you get when you do not have to pay cc anymore.

paulmish · #30 (**permalink**) 05-25-2005, 08:23 AM

Hi All,

This is my first post!

Anyway, I can't believe this coincidence, because I closed my Visa acct. with MBNA two days ago!!! My credit is spotless, I own a large home, my husband and I have earned good money. But, somewhere along the line they upped my rate to %20.74! Anyway, both my husband and I just finished going back to school to be math teachers - 14 classes for me and 8 classes for him. With the babysitting thrown in, it cost thousands (more than a couple).

Embarrassingly, I have lost track of bills lately, with student teaching and three faily young kids. So I don't even know how long the rate has been there. And yes, I have paid interest several times (usually pay the balance) without even noticing the rate. But now we are trying to save every dollar. So I checked the bill, and I exploded! I called MBNA, and talked to someone who was decidedly NOT helpful. I told her I would pay 10% on the late amount ($1200), but nothing on the following purchases (interest starts day one if you are late with a payment). She gave me the run around, but I told her "I'm not paying it, period." Then I called back, got someone else, and closed the account, and I also told him I was paying all the purchases, but not the interest. He gave me the "you will trash your credit rating" speech - I told him I used to do IT for a bank loan dept., and I know the rules better than he ever will.

Man, I really got rid of some steam! Anyway, I feel better knowing it isn't just me. I have several other cards, so who cares? Although, I am trying to see how I can get by without them, and maybe slowly "catch up" on the month behind situation you have when you are paying last month's balance at the same time as paying cash for this month's purchases.

My money saving tip for today:
"When you stress about money, go to the fridge and use up some old food to cook a meal". A $10-$15 savings over a fresh meal! (we are a family of 5)"

The Frugal Yuppie

jmjj215 · #31 (**permalink**) 05-25-2005, 11:05 AM

Frugal Yuppie,
Don't underestimate the power of a written budget if you aren't already on one. Are you writing down every single dollar you spend? That goes a LOOOONNNGGG way in increasing your monthly cash flow. (And way to stick it that CC dude - awesome).

singinjeannie · #32 (**permalink**) 06-05-2005, 11:40 AM

Just had to share this update. I have mailed the check to payoff MBNA completely.

Now, of course, I had to surf this debt to some other cc companies to make this happen, and basically, this debt went to three other sources of debt, but at least MBNA can now get a "Get Lost!!!" letter. Can't wait to write it.

Anyhoot. Remember I was calling every number I had for them and every number took me to an automated system? Well, that was when my cc line was maxed out. When I paid off most of the debt and only still owed them a few thousand dollars, I called one of their numbers, which previously had resulted in an automated response, to find out my balance and when I could expect a statement.

WOW! Guess what happened? A REAL, person answered the phone. Right away. No automated service! I was so shocked I said, "Wow, this is a real person. How did that happen?" To which this woman replied, "Well, it all depends on how busy we are." (Yeah, right.

) I told her I just wanted my balance and when would I be receiving a statement. She answered these questions and then asked me if I would like to transfer any balances over to MBNA.

She said, "We have some great deals on low interest rates for transferred balances." Uh-huh...

So, we get the REAL reason I got a real person. I actually had some room on my CC with them, so they needed to see if they could transfer some more credit onto my account. An automated system can't do that. I will never do business with this scumbag company again.

-Jean

jmjj215 · #33 (**permalink**) 06-06-2005, 08:08 AM

Great observation Jean. They're slick, but you're slicker

singinjeannie · #34 (**permalink**) 06-06-2005, 08:15 AM

Thanks, Jesse.
I wrote the "Get Lost" letter this morning and it felt SOOOOOO good.

Oh - also paid off my Sears card today. (Actually PAID it off - didn't surf the amount.) It's a good day!

-Jean

Tree0164 · #35 (**permalink**) 06-07-2005, 04:21 AM

Frugal Yuppie Welcome! Can you balance transfer out of MBNA???

Jeannie! That is probably very true.... I have them as one of my emergency CC and I am always getting notices and those transfer checks in the mail.

jmjj215 · #36 (**permalink**) 06-07-2005, 09:06 AM

We should get Jeffrey to post "Get Lost" letters or something.. I don't know - there's got to be something fun we can do with that letter. Can you post a copy of it? I hope you weren't mercifully nice (I always tend to soften a bit..it bugs me).

paulmish · #37 (**permalink**) 06-07-2005, 10:41 AM

Jesse - I used to be too nice, once I hit 40, that all changed! You sort of get, like, life is too short to pull punches anymore.

Tree0164 - Yes, what I did was apply for a Chase CC with 1 year of 0% and one free transfer. I applied online, they say it takes up to 30 days, but it took about 10. Give Chase a transfer amount for the old card, and plan to pay the rest yourself. You will probably see the payment on the old card before you receive the new one (I did). After that, STOP using credit. Use debit, and pay whatever you can on the credit balance. If you can't debit somehing, use the new card - the interest is 0% for purchases up to one year, too. After one year, either pay off the balance (if you have one), or transfer it to another 0% card. This is my plan - no interest, no bounced checks, and no more credit used - awesome! Eventually, you will be on a cash basis.

Please don't shop at Wal-Mart!!!

The Frugal Yuppie

esmeralda · #38 (**permalink**) 06-07-2005, 10:47 AM

paulmish,

I so hear you about the 40 thing. I've got a couple of years, but already I find that I am becoming more and more fearless about speaking up. Its actually rather enjoyable after being quiet for so long.

Anyway, do you know if Chase is still offering the free transfer at 0% If so, could you give the url? I too have an MBNA balance that I would like to be free of.

thanks

singinjeannie · #39 (**permalink**) 06-07-2005, 11:57 AM

I got a Chase at 0%, but they were only willing to give me $2,000. I needed much more than that. I took the $2000 at 0% and got 3.99% from a different Chase card I already had and transfered the remainder of the balance to that.

I have stopped using credit cards entirely. I'm just working on paying off my stupid-tax. (There's quite a bit of it.)

Want to go after evil companies? Go after the Credit Card companies. MBNA and Capital One, to start. These are the real enemy of success in America today.

jmjj215 · #40 (**permalink**) 06-08-2005, 09:35 AM

Singin,
Boy, what a long list we'd have if we started tallying up all the companies that did horrible things to consumers...

I totally agree wtih you that the CC companies are doing awful things to consumers. My only hang up is the fact that nobody forces anyone to sign up for a credit card and charge stuff on it. People choose to do that. My counter to my own thought though, is that the CC companies use very sophisticated marketing and pour so much money into convincing people they need the CC, that people hardly stand a chance. On one hand, the consumer makes the ultimate decision, but on the other, it's almost like they're being tortured to "talk" so to say.

I use a CC for all of my purchases and pay the balance off in full each month. Today while I was walking to work I was thinking about that. I do it because I get a 1% cashback on all purchases. That figures to about a month's worth of groceries over the course of a year - pretty significant for me and my little family. But I know the CCs get a % of each sale from the merchants - more than the cashback they give me. So am I still contributing to their bottom line? I kind of thought I was sticking it to 'em. I'm not sure now!