Beware Min. Monthly Payment Hsbc

jimw_2

:mad:
have just transfered two balances to HSBC to get 9 months interest free. I was expecting the minimun monthly payment to be about £60. When the statement came in the minimun payment was £90. On reading the small print on Minimum payment it states the following '£5 or 3% of the standard balance (whichever is greater) plus, in relation to each Balance Transfer being charged at a promotional rate,£5 or 3% of each such balance (whichever is greater)'
Although I am not paying interest I am now having to find an extra £30 per month which I hadn't budgeted for

Gingham_Ribbon

Is there a 'cooling off period'? You may be able to get out of your contract with them if you hurry about it.

This might need to be in a different part of the board. If the board guide moves it, it'll be so you get more helpful advice in the right part of the forum.

K9cuddles

I realised on my statement is awas a % of each BT.. but it was what I worked out anyways.. going on the total.

Cantdance_2

Yep, I noticed that and am currently trying to figure out ways of making Balance Transfers onto my card (once I finally get it) without them showing as Balance Transfers, in order to avoid these extra 3% a month payments...

I'm aiming to pay off two Next accounts plus £1900 to my parents with this card. The Next isn't a problem as you can just make Credit Card payments via their website which should show up as a purchase.

Not sure about the money I owe my parents though... Maybe a cash advance doesn't incur this extra 3% (I'll bet it doesn't qualify for 0% though!)

James

Anwen_2

Are you sure that Standard Balance doesn't mean non-BT amounts ie purchases??

My minimum payment was approx £60 for a balance of approx £2k which would be about right, 3% (including a BT and some purchases)

so for instance:

1000 on spending x 0.03 = 30
500 on BT1 x 0.03 = 15
1500 on BT2 x 0.03 = 45

= £90.

What is your actual balance, though?

nomoneytoday

Seems like the bank can't win. When they set low minimum payments they are moaned at for customers taking too long to clear balances (50 years in some cases), and when they set higher payments the customers complain...