I really hate MBNA--rant, please indulge.

[Citizen Jane]

This red company has me under its thumb. Husband and I actually refinanced to get rid of a previous debt to them several years ago then our largest loan got sold to them--a line of credit from grad school days.

Good news, it has a "relatively" low fixed rate of interest because we closed the account (except for payments) years ago. Of course, even after it was closed they tried to raise our rate again--unsuccessfully due to the reaming I gave them and threat of legal action.

In any case, I have been able to pay extra on it to lower the debt steadily. Bad news, they are raising our minimum from the finance charge + $15 to 1% plus the finance charge which is a LOT more than $15. So, we'll be going from paying extra each month (and I was proud of how I had it set up too!) to having to find another $150 on top of the finance charge + 15 + $100 extra I was already paying.

I know that the loan would have taken forever to pay off at the meager extra I was putting in, but I was concentrating on putting as much extra as I could on the higher rate cards then paying more on this one as they were paid off (Clark Howard's technique slightly modified). Now I'll have to pay less on them to pay more on this.

The only card we charge on is AMEX and pay it off each month, but the debt from necessities in grad school for both of us (not fun stuff, food, research, research travel crap) is something we have been and are working on chipping away at.

Of course, we will be able to figure out a way to handle this and it is a good thing that I have a job this year, so don't take this as a "poor me" whine.

The reality is that I really feel crappy for all the people out there who are getting hit with this far worse than we are because I just don't know what is going to happen to them. I hate MBNA and all the neo-con thugs screwing everyday citizens right and left without a seeming care in the world.

[mduffy31]

1. On that note, don't get me started on Wells Fargo

[AnneD]

2. Rave On Sister, Rave On

Let me recommend you read "Total Money Makeover" by Dave Ramsey. It has really helped hubby and me. For goodness sake tear up the cards (plasectomy) and go to cash. Follow his baby steps...they work. Good luck. Been there and leaving there......

[Citizen Jane]

5. Thanks, cards only for emergencies except Amex

We only use the cards for emergencies (basically when we need to pay dues, register for conferences, etc.) except for the amex which we pay off every month.

I'll check out the recommendation though, sounds great.

[AnnInLa]

3. And this from Clark Howard:

How high are your credit card rates?
Cardweb.com recently learned the highest interest rates from the ten largest credit card companies. These are the rates companies impose based on “cross default clauses.” Cross default clauses are any negative marks on your credit report that allow credit card companies to raise your interest rate. Here are the rates: Chase – 30%; Citibank – 30%; Bank of America – 30%; MBNA – 20%; Discover – 26%; Capital One – 27%; American Express – 28%; HSBC – 28%; Providian – 30% and Wells Fargo – 24%. So, if you have a credit card with one of these cards and you carry a balance, you run the risk of paying a 30 percent interest rate. In addition, there is no appeals process to the cross default clauses. If it’s an error on your credit report, credit card companies don’t care. They can still charge that rate. The only power you have is to pay your bills in full and on time. If you do that, you will never be charged these exorbitant rates.

http://clarkhoward.com/shownotes/index.html

[Nikki Stone 1]

4. My sympathies. These companies are no better than loan sharks

I know that it's hard to pick up extra income in grad school as well. Is there a small reader position available or can you tutor? Sorry if you're already doing these things; I am just trying to think of ways to help.

[Citizen Jane]

6. Oops, didn't make myself clear

Thanks for your kind thoughts. Hubby and I are actually out of grad school now, but still paying off debt from grad school along with the everyday expenses of a family with a young toddler. I actually did lots of extra stuff when possible in grad school, mostly teaching, both live and online.

Thanks again to everyone for letting me rant!!!

[Coventina]

7. I've had my share of headaches with MBNA as well.

I had several of their credit cards, but really only used one.

They played this little game with me by moving my due date up a few days each month. A way to try to get late charges.

When I called them up to complain about it, the customer service rep got really huffy with me and said that they were doing ME a favor by loaning money to me each month!

I have now ceased doing business with them.

:puke:

[northzax]

8. this isn't actually MBNA's fault

the SEC mandated a rise in miniumum payments. It was done to help people prevent perpetual debt. I would have preferred that older debts were grandfathered in, but it's a good idea, in the long run.