how do virgin calculate min repayments when the 16 months is up?

BeautyandtheBeast_3

any ideas?
do they charge the interest plus £25 or is it a min percentage of balance 2.5 etc?:rolleyes:

little_h_2

well mine seems to be a right mishmash!

As far as I can tell at the moment, it is the interest plus £5.

E.g. my interest was £36.05 last month and my minimum payment was £41.05

this seems to have been the case for the last few months for me.

I would think it depends how long you have had the card though, as when I checked the terms and conditions on the statement and on the internet, it did quote a percentage basis. I seem to remember when I first took the card out the minimum payment was £5.

hope this helps.

BeautyandtheBeast_3

thank you - i took the card out last november and my deal runs out in march so i was just trying to rework things and determine how much goes where if you get me? xx
p.s my minimum repayment at the moment (still in the deal period) is £25 p/m.

Butti

I would advise you to either pay it off or move it to a lower interest card BEFORE you come to the end of the interest free period. From my experience while you are in the 16 month interest free bit they like to increase your limit and throw credit card cheques at you with a ridiculous APR, about 29% in my case. I do struggle to see how the words 'Virgin' and 'responsible lending' go together.

So I went from a £5000 balance with a £25 minimum payment to a £5000 balance with a £130 minimum payment. The APR jumped from 0% to 25% so each year the debt would increase by £250 for each £1000, in my case £1250.

One thing in their favour is that it really does focus your mind. If you look at my signature you will see they have really focused me to throw everything at that card from summer 2009.

BeautyandtheBeast_3

thanks for that - did you find out what they used to calculate your min payment? xx

Butti

On the back of the statement it has the interest rates for the month. They are listed as 2.5292 per month. I've just multiplied that out by 12 which gives you an annual rate (hope you are sitting down) of 30.3%. No wonder I felt like I was sinking!!