How to Eliminate Credit Card Debt to MBNA

If you have an MBNA credit card with a dramatically high interest rate or a large balance, you may be wondering how to get yourself out of debt or, at the very least, improve your payment situation. MBNA has recently gained a reputation for decreasing responsible cardholders's credit limits in an effort to decrease their exposure to credit risk. This action has left many account holders feeling sour toward MBNA, wanting to pay their remaining debts and move on to a bank or credit company that puts customers first.

Instructions

1

Pay off your MBNA credit card the old-fashioned way. Most people are looking for a quick fix to get out of credit card debt; however, paying a few dollars more than the minimum payment each month may be the best thing for your credit score and your wallet. For example, if you have a $2,500 balance on your MBNA credit card at a 27% interest rate, you are probably making monthly minimum payments of approximately $85. If you continue to pay the minimum each month, it will take you 25 years to pay off the card. However, if you paid $105, a mere $20 extra each month, you would have the card paid off in three years with a total savings of $4,300 in interest payments.

2

Transfer your balance to a card with a lower rate. The quickest way to "pay off" a credit card that you are dissatisfied with due to service or high rates is to move your balance to a different company. The process is relatively simple. Check your current cards to see whether you have enough available credit to absorb your MBNA balance. If so, contact your card company and inform them that you wish to transfer a balance. They will either process your request over the phone or send you paperwork to complete and send in. If your other cards are maxed out (or you simply do not have any), shop around for a low-interest card and apply for it. Check the Web sites of the four major credit card providers--Visa, MasterCard, Discover and American Express--for more information on current rates and promotions. When your transfer is complete, your MBNA card will no longer carry a balance, and you can choose to close the account or leave it open.

3

Settle your MBNA account balance by working with a debt settlement agency. You should approach this option only if you are on the verge of bankruptcy and are unable to make minimum monthly payments on a number of bills. A debt settlement agency is a company that leverages their long-standing relationships with credit card companies to reduce your debt payoff amount by as much as 80 to 90%, depending upon your financial situation. The downside to this option is that it ruins your credit and should therefore only be used as a last resort to the debt management techniques listed above.