MSE News: Barclaycard to fix minimum payment blunder

3guesses

NickX wrote: »

Ofcourse mathematically you are correct, but as I think you know this would not be how it works in practice. Once the balance is less than £5 there is usually a clause that states that the Minimum Payment would equal the Full Balance and at that stage you would clear the balance.

Yes, I think the comparisons would have been clearer if they had reported how long it would have taken to get the outstanding balance down to £60 or under (as £60 was the monthly payment amount in the second scenario), and the corresponding interest paid in each case.