Barclaycard borrowers could see debt last for decades

ILW

MSE_Dan wrote: »

In the full minimum payments guide, our general guidance is, if you can afford the minimum payment of, say, £75 in month 1, then instead of signing up to pay the Minimum, making a fixed payment of £75 (which you can afford), is a very sensible course to sail.

Dan

I believe that option is already available.
As a previous psoter said "you cannot blame Barclaycard for peoples ignorance"
It aint always the banks fault.
PS I do not work for a bank, just believe people should start taking some responsibility for their own actions.
In my humble opinion, the header for this thread would have been just as truthful if it had read "Barclaycard give customers the option to pay off loans over decades"

Degenerate

For people in short-term difficulty, a lower minimum payment could make the difference between just scraping by or entering the cycle of missed payments, added charges and escalating interest rates. Those who don't need it can pay more. Anyone who isn't capable of understanding this should not have applied for a credit card in the first place.

CLAPTON

MSE_Dan wrote: »

Yep that's right - the fixed payment should always cover at least the interest in the first month - we hadn't mentioned the size of any balance above.

In the full minimum payments guide, our general guidance is, if you can afford the minimum payment of, say, £75 in month 1, then instead of signing up to pay the Minimum, making a fixed payment of £75 (which you can afford), is a very sensible course to sail.

Dan

It would seem to me that the guide ought to be amended to cover this point.

td_007

While a lot of people truly do not understand how the credit card works, there are many more (I do not include those with genuine need) who abuse the minimum payment facility just so that they can splash out on the latest mobile phone or Caribbean or what not.

Just as the credit card companies credit score to set credit limits, they should probably score to set minimum repayments as well so that customers now take responsibility to balance their spending with earnings.

Simon_Preston

All this is good news for me as it means I can have a slight break in my repayments or throw extra money at my more expensive debt.

CannyJock

As a stoozer, I'd say it's great news. The less I need to repay the better. Now if they'll sort out their £ 5,000 cap on 0% promotions then they'd be even more useful.

dfh

It might provide a life line for people who are struggling to make the minimum re-payments.Obviously,they would need to repay as much as possible when their financial situation improves so they can clear the debt faster.

MRSTITTLEMOUSE

mitrant wrote: »

Personally, I've often thought that basic areas of "adult life" should be taught in secondary schools. Managing credit arrangements and the like could easily be incorporated into maths classes... but instead they choose to teach us stuff about when trains are going to pass each other... like I'm James Bond and need to know that...

Don't they teach commerce anymore.
I know it was a compulsory subject in the last two years when we were at school.
Mind you I'm getting on a bit,mid fifties and things like that were deemed necessary then.
Seriously though if someone can't see that the less you pay off something the longer it's going to take and cost,then they should'nt be given a credit card in the first place.

waterwatcher

As someone whose pay fluctuates due to expenses (no not an MP and not for duck islands!) This reducution makes things so much easier for me, months when money is tight will be easier and then, as I do now, I can make over payements when I bring in more money. It is about people taking responsibility.

mitrant

MRSTITTLEMOUSE wrote: »

Don't they teach commerce anymore.
I know it was a compulsory subject in the last two years when we were at school.
Mind you I'm getting on a bit,mid fifties and things like that were deemed necessary then.
Seriously though if someone can't see that the less you pay off something the longer it's going to take and cost,then they should'nt be given a credit card in the first place.

You can take Business Studies as an option for the last two years, but it isn't compulsory - and if you're in a school that's anything like mine you can only take Business Studies if you also choose to take the subjects nobody else likes!

Now, of course, people who don't understand the ins and outs of credit cards shouldn't be given one - but they are, every single day because they're actually the preferred customer for a credit card company because they generate the most income. The truth is, the vast majority of people leave high school not knowing anything about how credit cards work, not understanding the jargon, not understanding APRs and AERs, not understanding income tax, council tax, road tax, how to buy a house, how to rent etc. etc.

The real-world is quite the system shock for many people.