Brother paying £30 p.m charges using o.draft with Halifax?

Consumerist

buel wrote: »

. . . please can anyone hazzard a guess at how much interest he pays on the minimum payment that he pays?

The minimum monthly payment is usually the greater of (a) 1% of the balance or (b) £5 + fees + interest.

Assuming interest charges are around £25 and he doesn't pay late-payment or insurance fees then his minimum repayment will be around £30 pm.

A look at a statement would be a good idea.

Edit
Just to give you a little idea, he would need to repay around £181 pm to pay off the entire debt in a year (assuming no further purchases in that time - i.e cut-up the card). From Halifax web site @ 15.9% APR on £2,000

opinions4u

Consumerist wrote: »

Just to give you a little idea, he would need to repay around £165 pm to pay off the entire debt in a year (assuming no further purchases in that time - i.e cut-up the card). From Halifax web site @ 15.9% APR on £2,000

£165 x 12 = £1,980.

If the debt is £2,000 and it's accruing interest then the payment to clear within a year needs to be a good bit higher than £165 a month.

jambosans

Consumerist wrote: »

These exchanges are not pointless at all. They expose you for what you are.

Oh do get over yourself, I've been flamed by many a poster on MSE, and Consumerist "champion of the little man" isn't going to expose me as anything. You'll note that not everyone agrees with you - queue the snide remark about the "banking brigade".

Consumerist wrote: »

I shall continue with them, anyway. If you think they are pointless then feel free to ignore them. You do have an ignore button.

What can I say? Call it stubbornness, but I refuse to be "pulled-up" by someone with absolutely no authority on this forum, other than their own self-righteous axe to grind.

Consumerist wrote: »

So your comments aren't exactly "harmless" are they ?

People need to lighten up, and anyways, Beul dismissed the comment as "silly", not "hurtful" or "upsetting". So yes, it was pretty harmless.

Not everyone on this forum sugar coats everything and has the same bedside manner as you. That does not make them "spiteful" or whatever other melodramatic adjective you choose to call me.

Note to OP: apologies for taking your thread off topic, feel free to report these posts.

Edit: on re-reading your post Consumerist I also notice that when confronted with genuine counter-argument you "nit-pick" the post and only respond to the least important parts. I keep on-topic, you drift off into a personal attack on me. I believe this post should sufficiently stoop to your level (probably enough for it to be removed by the mods if reported).

Consumerist

opinions4u wrote: »

£165 x 12 = £1,980.

If the debt is £2,000 and it's accruing interest then the payment to clear within a year needs to be a good bit higher than £165 a month.

Quite right. Thanks for checking.

That should be £181 per month. I've amended my previous post.

buel

thank you consumerist, it seems jambosans has admitted that it wasn't the cleverst of posts! Ok, the latest on this is my mum+I have lent my brother the cash+a bit more(he is a very honest+hard working brother, ie-a good lad) Unfortunately he has applied for an mbna card to do a 0%balance transfer on his £2000 c.card, i advised him that, being as his credit record isn't the best, to cancel the application+try for a more suitable/less demanding card as if the mbna application fails then he will have a search on his credit file! What do you think? Maybe go for a 'life of balance' percentage instead of a 0% with a probable fee on it?

Consumerist

If he has already applied for another credit card, it is likely that the credit search has already been done. It might have been better to wait and see what happened with that application before doing anything.

In principle, the 0% balance-transfer was not a bad idea providing your brother has the discipline not to use the card for any further expenditure. Pay the debt down into savings and then settle when the 0% is about to expire.

I suggest that he/you wait to see what happens regarding the card application then get an online credit report (£2) to see what it looks like. Then take it from there.

Does that sound reasonable to you too ?

kerri_gt

Seems like some good advsie on here. It would be good if your brother does get approved for an MBNA card and can shift the debt - AS LONG as he then cancels his H'Fax card and doesn't spend on the new card.

If you he wants to check his credit report, you used to be able to take out free trials with Equifax and the like via cashback sites, I'm not sure if the offer is still avaialbe, but it would be worth checking (again, so long as he cancels the trial so he doesn't get charged monthly fees)

Also, with regard to the overdraft, I would strongly suggest that he requests this to be lowered, perhaps to a £100 buffer, or even better zero, so he does not end up going back into it again.

Good idea for him to sell some of his unwanted items, it could give him a boost paying off his CC, and it's perfect weather for a car boot - you could do it together and split the entrance fee (which is usally per car, not pp), that way you only need to see a few items each in order to break even.

And please, his gf might only be trying to help/be supportive of her bf, but ask her to stop pulling strings to get your brother financial products.

Consumerist

kerri_gt wrote: »

Also, with regard to the overdraft, I would strongly suggest that he requests this to be lowered, perhaps to a £100 buffer, or even better zero, so he does not end up going back into it again.

I would advise caution on this point because you don't yet know how much of the debt he will be able to shift from his (authorised) overdraft. Unauthourised overdrafts cost £5 per day not £1 per day.

xyellowx

buel- fair play to you for helping your brother out dont think mine would help me , you may be better trying to educate him first though as he will probably return to bad spending habbits point him to the DEBT FREE WANNABE page and put up a SOA .
Halifax do charge £1 per day but surley wages must keep him out of O/D for a while ( if he has any D/DEBITS go out account try and get him to change the date to later in month so he stays out of O/D a bit longer)

opinions4u

Helping somebody out in this situation is admirable.

But only do it once.

Some individuals learn the lesson to manage their money better.

Others learn that if they overspend their family will pick up the tab, again and again.