minimum payment (which card?)

Clariman wrote:

Where is YorkshireBoy when you need him ?

This £5 MBNA "anomoly" is always hard to understand. Check out post #8 in this thread...

http://forums.moneysavingexpert.com/showthread.html?t=94858&page=1&pp=10&highlight=lesser

...where I tried to explain it for 'costcutter'. NB: the £50 mentioned is the BT fee, but if you start from the beginning you'll work this out anyway.

The wording...

The lesser of:
1. 2.25% of your balance (min. £5) or
2. charges for Payment Protection Cover plus interest and fees, plus £5 or
3. your balance, if it's under £5.

An example...

You are carrying a £10,000 balance.
You do not have PPC.
You are still in your introductory period, therefore 0% interest.
You have no fees (ie you paid your BT fee last month, have not been late paying, or had a DD refused).

So...

* with option 1., your min payment is £10,000 x 2.25% = £225
* with option 2., your min payment is 0 + 0 + 0 + £5 = £5
* option 3. can't be used as the balance is NOT under £5.

Therefore, it's the LESSER of options 1. & 2., ie, [size=+2]£5[/size]

===========================================

If you're not in your intro period (ie 15.9% APR/1.2408% per month), then the min payment calculations are...

* with option 1., your min payment is £10,000 x 2.25% = £225
* with option 2., your min payment is 0 + 124.08 + 0 + £5 = £129.08*
* option 3. can't be used again, as the balance is NOT under £5.

Therefore, it's the LESSER of options 1. & 2., ie, [size=+2]£129.08[/size]

* Assuming you paid last months statement in full, and this is the first month carrying a balance from the day after statement date.