40 Years to pay off £8000

[hypern12]

My wife has an credit card account with MBNA.

The balance is £8000 and she is paying them £200 per month and only £15 is coming off the balance at this rate it will take arround 40 years to pay it off. Have cca'd them to see if they can come up with the paperwork as it is an old agreement. They will not offer us any ways so that more of the £200 pounds come off the balance. I think this is mad !!

[supasnooper]

Have you thought about this route for the CCA ? - http://www.consumeractiongroup.co.uk/forum/legal-issues/173201-why-you-shouldnt-use.html

[hypern12]

Its 14 days since i sent the cca request and have heard nothing other than MBNA saying they are chasing the arrears on my wifes account but no agreement has surfaced. What now. ?

[hypern12]

The firm asking for the arrears is called GLOBAL VANTEDGE anybody had dealings with them?

[Surfer01]

At that rate it will cost her £96000 to pay off the debt.

[Coactum]

I’m not wanting to pull your thread off course but I thought you might be relieved to know that it will not take 40 years to repay because with each payment the outstanding value reduces and so your £200 payment will repay more of the capital and less will be absorbed as interest. I would recon that with the numbers you quote i.e. £185 monthly interests on £8000 that you will be clear in about 8 years. Still a long time I accept but not as bad as you might have been thinking.

[Coactum]

Oh and the total you will repay is nearer £20k than the £96K stated by Surfer01 i.e. £8K original capital and £12k interest

[hypern12]

In the last year she has paid 12 x £200 = £2400

The balance has dropped by less than £200.

She has paid at regular intervals even though she has told them we are in financial difficulties they are reluctant to set up any plan to help in any way.

[Coactum]

This is about right. I have just created a simple spreadsheet to ensure that my earlier guestimate was on track. This is what I get:

 

Starting Balance Monthly Payment Interest % per month Ending Balance

£8,000.00 £200.00 0.023125 £7,980.38

£7,980.38 £200.00 0.023125 £7,960.30

£7,960.30 £200.00 0.023125 £7,939.75

£7,939.75 £200.00 0.023125 £7,918.73

£7,918.73 £200.00 0.023125 £7,897.23

£7,897.23 £200.00 0.023125 £7,875.23

£7,875.23 £200.00 0.023125 £7,852.72

£7,852.72 £200.00 0.023125 £7,829.69

£7,829.69 £200.00 0.023125 £7,806.12

£7,806.12 £200.00 0.023125 £7,782.02

£7,782.02 £200.00 0.023125 £7,757.35

£7,757.35 £200.00 0.023125 £7,732.11

£7,732.11 £200.00 0.023125 £7,706.29

£7,706.29 £200.00 0.023125 £7,679.88

£7,679.88 £200.00 0.023125 £7,652.85

£7,652.85 £200.00 0.023125 £7,625.20

£7,625.20 £200.00 0.023125 £7,596.90

£7,596.90 £200.00 0.023125 £7,567.96

£7,567.96 £200.00 0.023125 £7,538.34

£7,538.34 £200.00 0.023125 £7,508.04

£7,508.04 £200.00 0.023125 £7,477.04

£7,477.04 £200.00 0.023125 £7,445.32

£7,445.32 £200.00 0.023125 £7,412.87

£7,412.87 £200.00 0.023125 £7,379.67

£7,379.67 £200.00 0.023125 £7,345.70

£7,345.70 £200.00 0.023125 £7,310.94

£7,310.94 £200.00 0.023125 £7,275.38

£7,275.38 £200.00 0.023125 £7,239.00

£7,239.00 £200.00 0.023125 £7,201.78

£7,201.78 £200.00 0.023125 £7,163.69

£7,163.69 £200.00 0.023125 £7,124.73

£7,124.73 £200.00 0.023125 £7,084.86

£7,084.86 £200.00 0.023125 £7,044.07

£7,044.07 £200.00 0.023125 £7,002.34

£7,002.34 £200.00 0.023125 £6,959.65

£6,959.65 £200.00 0.023125 £6,915.96

£6,915.96 £200.00 0.023125 £6,871.27

£6,871.27 £200.00 0.023125 £6,825.54

£6,825.54 £200.00 0.023125 £6,778.76

£6,778.76 £200.00 0.023125 £6,730.89

£6,730.89 £200.00 0.023125 £6,681.92

£6,681.92 £200.00 0.023125 £6,631.81

£6,631.81 £200.00 0.023125 £6,580.55

£6,580.55 £200.00 0.023125 £6,528.10

£6,528.10 £200.00 0.023125 £6,474.44

£6,474.44 £200.00 0.023125 £6,419.53

£6,419.53 £200.00 0.023125 £6,363.36

£6,363.36 £200.00 0.023125 £6,305.89

£6,305.89 £200.00 0.023125 £6,247.09

£6,247.09 £200.00 0.023125 £6,186.93

£6,186.93 £200.00 0.023125 £6,125.37

£6,125.37 £200.00 0.023125 £6,062.40

£6,062.40 £200.00 0.023125 £5,997.97

£5,997.97 £200.00 0.023125 £5,932.04

£5,932.04 £200.00 0.023125 £5,864.60

£5,864.60 £200.00 0.023125 £5,795.59

£5,795.59 £200.00 0.023125 £5,724.99

£5,724.99 £200.00 0.023125 £5,652.75

£5,652.75 £200.00 0.023125 £5,578.85

£5,578.85 £200.00 0.023125 £5,503.24

£5,503.24 £200.00 0.023125 £5,425.87

£5,425.87 £200.00 0.023125 £5,346.72

£5,346.72 £200.00 0.023125 £5,265.74

£5,265.74 £200.00 0.023125 £5,182.88

£5,182.88 £200.00 0.023125 £5,098.11

£5,098.11 £200.00 0.023125 £5,011.38

£5,011.38 £200.00 0.023125 £4,922.65

£4,922.65 £200.00 0.023125 £4,831.86

£4,831.86 £200.00 0.023125 £4,738.97

£4,738.97 £200.00 0.023125 £4,643.93

£4,643.93 £200.00 0.023125 £4,546.70

£4,546.70 £200.00 0.023125 £4,447.22

£4,447.22 £200.00 0.023125 £4,345.43

£4,345.43 £200.00 0.023125 £4,241.30

£4,241.30 £200.00 0.023125 £4,134.75

£4,134.75 £200.00 0.023125 £4,025.74

£4,025.74 £200.00 0.023125 £3,914.21

£3,914.21 £200.00 0.023125 £3,800.10

£3,800.10 £200.00 0.023125 £3,683.36

£3,683.36 £200.00 0.023125 £3,563.91

£3,563.91 £200.00 0.023125 £3,441.70

£3,441.70 £200.00 0.023125 £3,316.66

£3,316.66 £200.00 0.023125 £3,188.74

£3,188.74 £200.00 0.023125 £3,057.85

£3,057.85 £200.00 0.023125 £2,923.94

£2,923.94 £200.00 0.023125 £2,786.93

£2,786.93 £200.00 0.023125 £2,646.75

£2,646.75 £200.00 0.023125 £2,503.33

£2,503.33 £200.00 0.023125 £2,356.60

£2,356.60 £200.00 0.023125 £2,206.47

£2,206.47 £200.00 0.023125 £2,052.87

£2,052.87 £200.00 0.023125 £1,895.72

£1,895.72 £200.00 0.023125 £1,734.93

£1,734.93 £200.00 0.023125 £1,570.42

£1,570.42 £200.00 0.023125 £1,402.12

£1,402.12 £200.00 0.023125 £1,229.91

£1,229.91 £200.00 0.023125 £1,053.73

£1,053.73 £200.00 0.023125 £873.47

£873.47 £200.00 0.023125 £689.05

£689.05 £200.00 0.023125 £500.36

£500.36 £200.00 0.023125 £307.30

£307.30 £200.00 0.023125 £109.78

 

So on the 104th month all is repaid

[Coactum]

Of course this is based upon the interest rate being 2.315% per month which I calculated using your figure of an £8000 balance and that £200 pament only reduced the balance by £15, as such £185 went in interest, so, 185/8000 gives the monthly ratio as 0.023125 as stated on 2.315% in more understandable terms.