MBNA Release Credit Card To Help Beat Negative Order Of Payment

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The UK’s largest credit card provider has launched a credit card to help people clear balance transfers and purchases at the same time

This card is ideal for those who have a balance to transfer and for those looking for a promotional rate on card purchases too, both in one card.

The new MBNA Platinum Dual credit card offers holders 0% on purchases and balance transfers for the first 10 months after signing up. As well as being a solid offer in a market place that has seen a dramatic reduction in the number of 0% deals, the card also aims to tackle the problem of negative orders of payment.

A negative payment order has been an issue for many credit card holders who have taken advantage of 0% balance transfer deals over the last few years. Upon securing a transfer and benefiting from a reduction in interest on that debt, many discovered that their payments to the card were clearing the transfer and not any debt they already had on that card or any purchases they may make.

The result is a debt that many have been unable to make payments against and that has simply continued to accrue interest. It is this problem that the new MBNA Platinum Dual card provides a solution to, as it treats purchases and transfers as one and the same, allowing card-holders to reduce the balance of both with every repayment.

Speaking about the new card, an MBNA representative said: “This card is ideal for those who have a balance to transfer and for those looking for a promotional rate on card purchases too, both in one card.”

The release of the card by the Bank of America Subsidiary could not be better timed as recent industry figures revealed that national outstanding credit card debt has risen by 10% over the last 12 months to just under £55 billion.

The rise in debts combined with the reduction in attractive credit card offers like these on the market has left many with high repayments, as the average interest rate hit a 12 year high of 18.9% last month, The reaction of MBNA to offer the 30 million card holders in the UK a real solution to mounting card debt came at the same time as increased discussions on the Financial Services Bill that is to come into force later this year.

The Bill plans to tackle UK consumer credit card debt by increasing regulations across the industry and encouraging the proliferation of so called ‘smarter lending’. It’s a sea change for the financial industry that the new coalition Government will be keen to support as they look to lead the UK out of the recession and into recovery.

With the introduction of the Platinum Dual card, MBNA have definitely stole the march on other providers in the smart lending stakes. The Dual card offers a refreshing blend of practicality and debt management benefits that will prove popular in a marketplace with very few outstanding offers and plenty of outstanding debt. for more information visit http://www.MBNA.co.uk

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David Towers

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