minimum payment going up on virgin card??

gfunk_2

i have around 1700 pounds on my virgin credit card, minimum payment required each month seems to be steadily rising, why is that?

I make min payment each month plus an extra 30 odd pounds per month to help bring it down.

[Deleted User]

whats the min payment % and the apr?

gfunk_2

Hi, i don't actually know! doesn't show on statement, will i have to ring them to find out do you think?

ill log into tomorrow and check the apr etc, as prefer to do banking on work pc, better firewalls!

dtaylor84

My Virgin Card terms state that the minimum payment will be the greater of £25.00 or any charges for Payment Protection Cover, interest and default charges plus £5.00.

The interest rates that apply to your balance are shown on the statement.

Is your balance increasing?

If not, I can only assume you are paying off a balance at a low rate, whilst a balance at a higher rate is growing (and the total amount of interest you are being charged each month exceeds £20 and is growing).

YorkshireBoy

gfunk wrote: »

doesn't show on statement

The monthly rate does though. Tell us the monthly rate(s) quoted, and we'll be able to tell you the APR(s).

Is your balance purely purchases, BTs, or both? Is there a cash balance?

For your information, the minimum payment has to cover the interest already applied at statement date...but not the interest to be accrued between the current statement and it's payment due date/the next statement date.

gfunk_2

Hi, my rates showing on online statement are thus:

Balance Transfers 2.0084% Cash Transactions 2.2071%.

Now minimum payment for sept is up to £39 as opposed to £34 the previous month. I think i really need to focus on this debt as i can now see how these can get out of hand!
Hope my flat sells soon so i can pay off debts and never borrow again! (mortgages aside).

Mickyp

Mine keeps going up too! Got a balance of £2700 (0%) and it has gone from £25 a month steadily up to £30!

Percy1983

Maybe they are being more responsible, I have paid and celled my Virgin card but I remember thinking at one point 'if I pay the minimum payment of £60 it will only reduce my balance by £1'

mortgagenomore_2

I had the same problem my monthly 'interest' rose last month even though i had spent nothing on the card and have a reduced interest rate of 1.9% until Dec, they informed me their rates had gone up in July yet i had been sent a letter (never received surprisingly) to opt out? but now there is no option for me to opt out? completely confused can only reckon they have upped their rates, i am paying in full this month anyway so not bothered but email or call them to enquire see if you got the 'imaginery' letter also!

euronorris

Percy1983 wrote: »

Maybe they are being more responsible, I have paid and celled my Virgin card but I remember thinking at one point 'if I pay the minimum payment of £60 it will only reduce my balance by £1'

I was in a similar position at one point also. As the min payment was interest plus 5 GBP, the balance was only reducing by 5 GBP pm. But I re-jigged my finances, made some cutbacks and increased the payments. Now it's nearly cleared!!

Onto Halifax CC soon as that is currently only decreasing by 5 GBP pm.

Edit: Also, minimum payments can fluctuate by small amounts (relative to the overall balance on the card) due to the number of days in each month. So, it's not uncommon for a min payment to be 50 GBP one month, but 55 GBP the next month, even though the overall balance had been reduced by 5 GBP in the first month.

JimmyTheWig

This is a really bizarre one, I think.
Presumably, OP, you're not spending on the card?

Is your balance going down each month?
Is the interest being charged going down each month?

Have you had a special offer run out recently?

On the "interest + £5" rule, it should be £39. So the question is why was it only £34 last month?