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Barclaycard = evil APR hike - help anyone?

:mad: Well had a lovely statement waiting for me when got home today from Barclaycard. Looked at it as usual ouch as usual but then noticed a nice message saying oh by the way your interest rate is going up by 5% to 27.9% from September statement.

Tried ringing but got absolutely no help from a non helpful advisor. I wanted to know what the new min payment will be but after they tried to give me some dud info about my old APR being a promotional balance, they wouldn't tell me what this new payment will be or the interest.

My percentages calculations can be sketchy so can anyone help me out?

It's an 8k balance so I have worked out that the new monthly interest will be £186. (up from £139)
My min payment is 2.25% which is £180.
So will my min payment stay the same or will they change this with the interest hike?
Am I going to end up where my min payment doesn't even cover my interest and my balance actually goes up each month?? I'm at the credit limit aswell so will have to make overpayments just to stay in the limit???

On a v tight budget as have other debts but trying to figure out if I could afford to pay more but really need to know whether the min payment changes before I can work this out??


Any help appreciated...

:mad:
DMP with Payplan
DMP Support number 287
Trying to lose lbs and save £££s!

Comments

  • cifpower
    cifpower Posts: 6,502 Forumite
    Your minimum payment will stay the same
  • normanmark
    normanmark Posts: 4,156 Forumite
    Its just the interest that they apply to the account, that will increase per month.
  • mcrfan
    mcrfan Posts: 165 Forumite
    Thanks.

    Grr :mad:
    DMP with Payplan
    DMP Support number 287
    Trying to lose lbs and save £££s!
  • normanmark
    normanmark Posts: 4,156 Forumite
    Frustrating - i can understand. Your best bet is to start planning to pay off more than the minimum as you're not going to dent much into that balance!
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    27.9% APR is 2.0718% per month.

    You will still be reducing your balance (albeit not by much) each month if you pay 2.25%.

    I've assumed the balance is entirely purchases and/or balance transfers, ie there is no cash advance balance?
This discussion has been closed.
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