Has your credit card reduced your minimum payment criteria??

pault123

Logged onto Virgin, and Marks & Spencer credit cards tonight and they have reduced my minumum payment from 5% which is normally £100+ down to £25 in Virgins case and Marks and Spencer minimum payments has gone down by £90 too.

Is this a co-ordinated effort by the banks to make it easier for us in these hard times?

Anyone else had their minimum payment criteria reduced?

(sorry if duplicate post couldn't find anything else on this!)

IWantToBeFree_2

There are loads of other threads on it!!

But yeah, most of my cards have had their minimums reduced, my Halifax one dropped to just 1% of the balance. Obviously the banks say that it is to help us, but lower monthly payments = longer to pay balance = more interest, so its not like they aren't helping themselves either!

ShelfStacker_3

Lower minimum = more interest. Fairly simple.

While I'm not usually the sort that's overtly cynical about everything banks do, they certainly don't do something like this for altruistic reasons. The flipside is that while it also increases their profit, it might well decrease their default rate, which again is a good thing for all concerned.

WaltD

pault123 wrote: »

Anyone else had their minimum payment criteria reduced?

On the contrary! Egg Card have increased their minimum payment so that I now always have to pay off at least the current month's interest. I believe some other card issuers have done the same.

WaltD

pault123

ok thanks guys I realise the longer pay off term is a bad thing if you do reduce payments but its nice to have the option :T


Walt I never did have good experience with my egg card, nor many people i've spoke to.

Bismarck

WaltD wrote: »

On the contrary! Egg Card have increased their minimum payment so that I now always have to pay off at least the current month's interest. I believe some other card issuers have done the same.

WaltD

you'll always have to at least pay off that month's interest or you'll never get anywhere...