MINT blance £4,000, no spend in 6 years, £2,667 pa min payment. Is this right?

Charlie_Manchester

The title is the question I suppose. Seems a crazy amount and the balance is still £4,000. £2,667 per year doesn't bring it down a jot.

What does anoy me is that the minimum payment is usually £134, so I pat £134. Then two weeks later I get a letter saying that I am over the credit limei (£12 default fee) and that I need to pay something liek an extra £80 or more. This month I the statment said minimum of £134 so I phoned to see if this was correct and they said that to bring it under the limit when they next put the interest on I would need to pay £270, more than double the minimum!!

This can't be right. I am paying £2,667 a year on a constant £4,000 debt and am still going overlimit (due to their interest) and am getting defaults. What more do they want? What can I do. I can't shift to another card because of the dfaults on this one!

I have PPI on this and they say that when the minimum payment is £134 it doesn't include PPI and I should add this on. Surely minimum payment means minimu payment??

michaelvintner

Cancel the payment protection insurance, waste of time and money.

Sound like the PPI is counted as a purchase which is why it is not included in your minimum repayment.

First step I would take if I was you is cancel the PPI. This will at least stop the balance from going up.

CannyJock

£134 minimum repayment a month is £1608 a year.

So presumably £1509 is PPI?

Why do you have PPI?

The basic answer whether it's correct or not is inevitably - Yes.

Mint summary box is here if you want a read http://www.mint.co.uk/credit_cards02.asp?page=CARDS/CREDIT_CARDS/SUMMARY_BOX

What's the APR on your balance?

Tixy

Minimum payment is defined in the T&C and is almost always a percentage of the balance. It doesn't take into account the credit limit on the card. If you are too close to your limit then you should pay off more ensure that you stay within your limit - this is your responsibility not theirs.

Credit cards were never designed to keep long term debt on and if you only make the minimum payments it can take more than a lifetime to clear the debt and will certainly cost you loads in interest.

Have you shopped around for independant PPI? - you might find it much cheaper if you decide you do need PPI cover.

Charlie_Manchester

I almost cancelled the PPI a couple of months ago but didn't and have since been made redundant. I want to claim the PPI but (if successful) it won't pay out for another three months as I have 3 months pay in lieu of notice.

I am tempted to still cancel the PPI and make savings straight away and try to reclaim the PPI as I never asked for it. I haven't sent back the claim form so not sure if there will be an issue with me 'almost' making a claim and then saying that I want to claim for mis sold PPI.

That said I thought a PPI paid out straight away, not make you wait for three months (by which time I might have a job) and they want me to fill in a form every month with copies of job applications, records of interviews etc. The Job Centre asks for this anyway and they have to sign the PPI claim every month anyway.

You pay all that money on a policy but when you need them they make it as hard as possible.

Do you think that I can not go ahead with the claim and try and claim back the PPI as it isn not fit for purpose??

Charlie_Manchester

Interest is charge at 2.21%

CannyJock

Charlie_Manchester wrote: »

Interest is charge at 2.21%

This calculator http://www.stoozing.com/mon2yr.htm shows that's 29.9% APR.

It's high, but not sub-prime ridiculously high.

Payment in lieu of notice won't affect your PPI claim if you've got confirmation that you're redundant on dd/mm/yy. Ask your former employment for a simple written statement to this effect.

Making a claim on these things isn't supposed to be easy, they want you to jump through hoops.

Your call which way you go on it, but if you stop making the premium payments then you'll automatically lose your right to claim on the policy.