Virgin Money CC Min Payment

SparciaM

I got my statement through today and the min payment is £15 which I worked out to be around 0.07% - Do Virgin not do the whole 2/3% min?!?

I'm guessing they want you to have the debt longer than possible.

lolo.lolo

change ur virgin cc as soon as possible, mine was 6.2% now they have changed it to 39.9% its a bloody rip off, they change it without tellin u

Bismarck

SparciaM wrote: »

I got my statement through today and the min payment is £15 which I worked out to be around 0.07% - Do Virgin not do the whole 2/3% min?!?

I'm guessing they want you to have the debt longer than possible.

in a word "no"

Virgin/MBNA do minimums based on the lower of either

a) fixed amount plus interest, charges and fees

b) some percentage of the balance outstanding

these vary from card to card but the principle is the same


the minimum payment thing is a lure to get you to have the highest balance possible for when the special deal that you are on ends!

nzseries1

Bismarck wrote: »

the minimum payment thing is a lure to get you to have the highest balance possible for when the special deal that you are on ends!

But if the repayments were too high, then people would moan about not being able to pay the minimum... so Virgin can't really win, can they? There is nothing stopping you paying more than the minimum, in fact, they even suggest it on their summary box!

Bismarck

nzseries1 wrote: »

But if the repayments were too high, then people would moan about not being able to pay the minimum... so Virgin can't really win, can they?

so why did Virgin/MBNA set the monthly minimum payments low? Did they deliberately set the payments low so that people can stooze? Was that what they really had in mind when they did their pricing?

nzseries1

Bismarck wrote: »

so why did Virgin/MBNA set the monthly minimum payments low? Did they deliberately set the payments low so that people can stooze? Was that what they really had in mind when they did their pricing?

Good question, I gave Virgin the benefit of the doubt. I figured they were just being flexible, i.e. giving people the choice of a low minimum payment if that's all they wanted to pay, or giving them the choice to pay off more if they don't want a large debt. Quite good of them I thought.

I figured they didn't even factor stoozing into their equation, but since they've got by far the best card for new stoozers, perhaps I'm wrong!

noh

SparciaM wrote: »

I got my statement through today and the min payment is £15 which I worked out to be around 0.07% - Do Virgin not do the whole 2/3% min?!?

I'm guessing they want you to have the debt longer than possible.

It's to your advantage. Work out what 3% of your debt is, pay the min £15 (mines £25) to Virgin/MBNA pay the rest into a savings account. Next September, when your 0% deal is finished, use the contents of the savings account, including interest, to reduce your balance. How long you have the debt for is entirely under your control.

Nigel

nzseries1

noh wrote: »

How long you have the debt for is entirely under your control.

Couldn't agree more.