Virgin/MBNA minimum payments after balance transfer

mell242

I'm confused and hoping someone can help..
I had an MBNA cc with £2872 outanding on it at 0% and a Virgin cc with £450 on it. I was paying £25 minimum each month on each card ie. £50 per month in total.

I have just transfered the MBNA balance onto the Virgin card as it is a longer 0% offer, this makes my total balance now £3272. I have just checked my account online and my next minimum payment is £85.46!

I really wanted to try and cut down my monthly outgoings as I am now on maternity leave but I feel I've just made a big mistake. Where as I was paying £50 in total for 2 cards I am now going to be paying £85.46! I have also read on other threads here that the minimum payment for Virgin is 3% of the outstanding balance or £25 minimum, if this is the case then my monthly payment would be £98.16....
sorry totally confused!

NickX

I think your Minimum Payment is higher because it includes the Balance Transfer Fee - they collect this as part of the first payment after completing the Balance Transfer.

After this payment, your Minimum Payments should revert to £25 per month whilst you are on the 0% promotion.

NickX

mell242 wrote: »

I have also read on other threads here that the minimum payment for Virgin is 3% of the outstanding balance or £25 minimum

It is the lower of these two amounts, making your monthly payment after you have repaid the Balance Transfer fee the £25 figure.

nzseries1

When you transfer a balance with Virgin, you have to pay the fee in the next month's minimum payment. So, assuming the fee is 2.98%,

£2872 x 2.98% = £85.59.

Once you pay off this statement, your minimum payment will revert back £25, so no need to worry.

nomoneytoday

The payment should revert back to £25, although the flip side is a larger balance remains unpaid if it can't be transferred when the cheap debt period ends...

mell242

thank you all so much! that really has put my mind at rest. I was very confused but this does make sense.
thanks again