Halifax & MBNA minimum payments halved?

Frugaldom

Apologies if this has been covered elsewhere and I've missed it.

I did a BT to a Halifax card to take advantage of their 13 months at 0% Originally, the minimum payments were 2% of the overall balance, however, this month they have only taken 1% - have I missed a change of terms somewhere or should I query it in case there's been a mistake made on the statement?

darthpaul

Just had my IF statement through and mine has also halved to 1% of balance. Could be a crafty way of them earning more interest as the balance will take longer to pay off or perhaps its to make it easier for people and to get less defaulting on payments?

Frugaldom

Thanks for reply, I was worried it was a mistake; their Ts & Cs state that you forfeit the 0% if you fail to make the minimum payments and the agreement I signed had minimum payment at 2%
I could benefit from it ever so slightly, as it's stoozed balance, but I really wish I'd read all the small print in their mail-out! I'm sure it was their change to terms & conditions letter I read but I certainly don't recall anything that clearly stated payments would half.

Paulgonnabedebtfree

nykmedia wrote: »

Apologies if this has been covered elsewhere and I've missed it.

I did a BT to a Halifax card to take advantage of their 13 months at 0% Originally, the minimum payments were 2% of the overall balance, however, this month they have only taken 1% - have I missed a change of terms somewhere or should I query it in case there's been a mistake made on the statement?

Mine has halved too. I posted about it over the weekend.

I know it will take longer to pay off but at my current debt level to them it's about £70 less a month going out. Welcome respite indeed. As I get gradually get back on my feet, I will start paying more than the minimum. My deal with them is LOB at either 6.9% or 7.9% (so many debts I can't recall which rate it is).
I have a similar LOB deal with Egg as well (that one IS 6.9%). They sent me some revised T & Cs recently. If I understood it correctly, it looks like they may be taking a similar route. If so, that would also be a help. Not the greatest way to manage credit cards but reducing my current outgoings is welcome even if it means paying more in the longer term.

darthpaul

Yeah ditto to that Paul, it is welcome respite. I will look to increase the payments when time allows unless they change it back later.

spudulike24

There are 3 minimum payments Halifax now offer...
1st - If your minimum payment is £5 or below then you will pay that amount
2nd - 1% of your balance
3rd - Your interest + any fees + £5 (effectively reducing your balance by £5).

Which ever is the greastest amount of the above thats the amount you'll pay.

Frugaldom

I've just checked MBNA and the amount they are quoting for next month's minimum payment is now less than 0.5% This is certainly a big surprise, I'm quite stunned!

YorkshireBoy

So that's two cards you haven't received two months notice of the changes for? That's some coincidence.

Frugaldom

I probably did receive the T&C changes, but never read as far as the minimum payments. Please accept my humblest apologies for such crass behaviour, I shall endeavour to scrutinise every word if future.

PS: What's so coincidental about that, YorkshireLad?

YorkshireBoy

There was supposed to be a touch of irony (but the smiley didn't stick for some reason), because as a stoozer I thought you'd be more thorough...since the penalties are so severe.

I missed an MBNA change myself recently (although it was very subtle) when they stopped collecting the BT fee with the first minimum payment. Was a pleasant surprise that they only took £25 rather than the near £400 I'd budgeted for.

Frugaldom

Ah, gotcha now - thought you meant I was a numpty when, in actual fact, I'm just a little bit less money savvy than I should be. I can't keep up with all the T&C changes. For instance, does the 2.9% 'special offer' rate on the MBNA business card extend for the duration of the debt? Their most recent offer read like a term of balance one if taken before October 31st but, equally, it could mean it was only 2.9% until October 31st, which is why I'm paying a little bit of attention, otherwise I would never have noticed until the time came to transfer or payback. I guess I need to go read some more small print for Egg, Amex, blah, blah, blah... it's just so boring.