0% credit card drawback

pistol

Don't know whether this may be of some use to other people but I got a bit caught out when transfering a balance to a 0% card this month.
I transfered about £3,800 on a 10 month 0% card but when my statement came through it showed that I have to give a minimum payment of £77 every month.
I didn't realise that they require that 2% of the overall balance is paid back monthly, so the card's noth that useful really as I can't afford the minimum monthly payment.
Does anyone know which 0% cards have a minumum payment which is less?

YorkshireBoy

Only cards from the MBNA stable (MBNA, Virgin, A&L, Abbey et al) have lower minimum monthly payments at £5/month - but this is only during the introductory period. After 9 months or so they rise to around 2.25%.

I have to ask though...why didn't you read the summary box/T&C's before signing the credit agreement?

jonesMUFCforever

If you can't afford the minimum repayment now you should get proper financial advice as it looks you could be heading for a fall.

gingercordial

2% is actually quite low (apart from the MBNA stable), some cards are 3%. You really should have checked the terms & conditions!

Did you expect that you wouldn't have to repay anything for 10 months? Surely you were making minimum payments on whatever card you've balance transferred from? Weren't they 2% (or more) also? If you can't afford the minimum payments then you will have to do some combination of cutting back on other spending, getting a second job to earn more, or contacting your creditors to make some kind of arrangement with them. Check out the Debt-Free Wannabe board for help with all of these methods.

0% just means that no INTEREST will be added for 10 months. So those minimum payments of yours are genuinely paying off your debt, rather than just paying off interest. Much better to be at 0% than not.

pistol

I transfered from a virgin card where I was paying £5 a month minimum repayments and I assumed all the 0% cards would be the same.
It's no sweat though as I'll just pay the £77 for 10 months and at least it's reducing some of my debt then after that I'll BT it again, probably for one of the MBNA ones.

MarkyMarkD

Now it's no sweat; in your first post you couldn't afford the minimum payments.

Which is it?