Anyone get their minimum increased??

iVillage Member
Registered: 12-05-2004
Anyone get their minimum increased??
23
Tue, 12-13-2005 - 11:27pm


MBNA said they would be raising the monthly minimums from 1% to "up to 5%" of my balance, starting with the December statement. I still have a couple of days until the December bill will print, and I can go online and see what my new minimum will be....and it's driving me bonkers just waiting! I am dreading seeing a $470 minimum, which would be 5% of what I currently owe.

Has anyone else seen their minimums go up?? I don't mind an increase--just not 5%! LOL!

Pat

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iVillage Member
Registered: 01-06-2005
Tue, 12-13-2005 - 11:39pm

My Chase card's minimum went up also. "To help you reduce your balance more quickly, your minimum payment is increased with this statement. This ensures that your principle balance is reduced by at least 1% each month."

Thank goodness I only owe $1,400 on this card. And thank goodness I typically pay more than the minimum anyway.

Ugh.

~Aravis~

 

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iVillage Member
Registered: 04-14-2003
Wed, 12-14-2005 - 9:03am

The minimum on my MBNA was raised to 1%. Perhaps it has more to do with what the balance owed is? I have all of my CC debt on an MBNA card, so to have me pay 5% on a $9700 balance would probably cause a known hardship. However, if the balance were only $200, then they would be more likely to request a 5% minimum payment. It would be interesting to see if my theory is correct so keep us posted.

Windy

iVillage Member
Registered: 07-11-2001
Wed, 12-14-2005 - 9:23am

I noticed my minumum increased also. I don't mind paying a little more, but those who hold large balances on one card could really be affected by this. I wonder those who have larger balances what they arre paying on their minimums.

Beach

iVillage Member
Registered: 01-25-2005
Wed, 12-14-2005 - 10:47am
I haven't noticed anything on mine yet, but a friend of mine has, and it wasn't good news. She owes just over $19,000 on a Bank of America card, and her minimum payment was $110, but she was sending in $150. Now it jumped up to $298! She called BOA yesterday to try to get it back down, but the rep. she talked to said something about it being a federal law that you have to pay 1% of the balance plus the finance charges. She also has an MBNA and a Citibank, (which were the first ones to announce doubling their minimums), and she is terrified of what she's going to see. I have tried to be supportive, but I don't make suggestions anymore. Between the 4 cases of beer per week, 3 cartons of cigarettes per week, large satellite tv package, expensive DSL internet service, dinners out twice a week, etc. there are many places I believe she and her DH could cut expenses to make up the difference. I guess you have to want it enough to make changes?
iVillage Member
Registered: 01-06-2005
Wed, 12-14-2005 - 11:59am

I agree!!!! If you have that high of credit card debt, the least you could do is cut back a little, right?

I haven't had cable TV in over two years, and it hasn't hurt me! :-) Amongst other things we have cut back on.

I suppose if you can't pay the minimum on your credit cards, that should be a wake-up call that your money situation is pretty bad. :(

~Aravis~

 

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iVillage Member
Registered: 06-23-2005
Wed, 12-14-2005 - 12:03pm

We have over $12,000 on a MBNA card and have not seen a change in the minimum. I was told our minimum would be figured by adding the following:

any late fees + 1% of the balance + finance charge

So on a $12,000 plus balance, our minimum payment for January is $169.

Then I was told that the maximum they can charge you as a minimum pmt is 5% of the balance, regardless of the figure the formula results in.

To play it safe, we're paying way more than the minimum starting next month so in case they ever change their minds, we'll be prepared. Either way, the darn thing is getting paid off.

iVillage Member
Registered: 07-21-2003
Wed, 12-14-2005 - 3:08pm

While I am on my tirade...YES!!! Our minimum payments have increased. By approx. $100 + per month. What the heck do they think they are accomplishing? Well, I am planning on paying off the smaller cc's and closing them. I am also planning on paying off the larger cc's and now have the incentive to do so. I am totally upset right now (just posted on the weekly update for monday below) and am finding the resolve. Now, if only I can stay committed and get on with the program.

iVillage Member
Registered: 11-14-2005
Wed, 12-14-2005 - 4:09pm

NINI505

Beware of closing those paid off accounts. I did the same thing and it lowered by credit score a whopping 100 POINTS!!. I would pay them off and cut them up. Then sign up for paperless billing and soon you will forget that you even have them. I have 3 I did that way, and they have stayed paid off for over 5 years.

iVillage Member
Registered: 10-10-2005
Wed, 12-14-2005 - 5:03pm

We'll I just go my Chase CC bill and it hasn't increased any that's not from me charging on it. I saw my BOA minimum increase a few months back but still dread the not knowing. My bill should be generated from them on the 20th of this month. Discover I won't know until after Christmas, my payment from my last bill was due on Christmas. My Best Buy card which I'm focusing on now did double though, thankfully I only had $1000 on it.

This week is all about pareing down expenses though. I'm planning on going to strickly Life-Line cable (will only get the local channels) I'm also considering cutting back my Netflix to the $9.95 one movie out a month plan. Push comes to shove I could also cancel my Internet service but that's a last resort if I all my minimums increase. Plus after the middle of next month I'll have my Best Buy Card paid off so that will free up $50 a month that can be applied against the other cards.

And there is always the chance of me getting a part time job (or working a bunch of overtime at work), I keep kicking around the idea but haven't really made an effort to find anything part time.

You know I understand the idea of what they're trying to do...to get people out of the holes they've dug themselves into but this let's increase all minimums at once by this percentage is stupid. There are a lot of people like me out there trying to get themselves out of debt and this through everything out of wack. My largest balance is on my card with the lowest interest, I don't want to send a lot of money to that card when I could instead send it to my high interest cards and come out head in the long run. I wouldn't mind a small increase in the payment but not something huge.

iVillage Member
Registered: 12-05-2004
Thu, 12-15-2005 - 8:09am
Well, I checked my MBNA account online this morning, and it still says "$O.OO due by 12/14/05" (yesterday). So I guess they didn't update their computers overnight like I thought. I'll keep an eye on it over the next few days. They've got to update them sometime. LOL! :-D

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