Min Payment going Up???

JSR

Lloyd's minimum payment is charges + interest + 1% of balance. Does that work out on the statements?

May I suggest converting the debt into a loan? If your mother has good credit I'm sure she could get something at a much lower interest rate. For a 7 year loan at say 12% the monthly payments would be about £235 (or £198 at 6%). Payments would be fixed and the debt would be gone at the end. Just cut up the card. :-)

Poosmate

So the payment due date is 17th of the month and she pays on the 2nd, what is the statement date?

What I am wondering is if she's paying too soon so she's getting late payment fees? Is the payment set up on DD?

Poo

Ben8282

JSR wrote: »

Lloyd's minimum payment is charges + interest + 1% of balance. Does that work out on the statements?

QUOTE]

Sorry to confuse the issue but my Lloyds/TSB minimum payment is charges + interest + 0.5% of balance.

Ben8282

What is the actual cause for concern here. We are talking about minimum payments, not interest. A larger mimimum payment will reduce the debt and interest. And as you say she is paying slightly over the minimum anyway, why does the minimum payment amount really matter to the extent of causing her to be filled with dread.

Looking at the statement information, the variation in minimum payment, apart from the rather high amount in Nov and compensating very low amount in Dec for reasons which I cannot explain unless she used the card during this period which you say she did not, is not significant and is easily explained by different amounts of interest being charged due to differing length of the statement period. The average minimum payment over the period is £268.22.

chattychappy

I wonder if part of the explanation is because each payment is being made at a different time in the billing cycle. If the payment hits close to deadline, there will be relatively (to the balance) more interest than if the payment is made soon after the statement is generated. Since the minimum is calculated by reference to the interest charged then this could be a factor.

We also need to know the interest charged for each month and the date/amount of payment made.

kahunababy wrote: »

although she has withdrawn cash on this card (!) the statement claims that the interest is the same for both so I don't see how that could affect it. She hasn't spent on the card since June last year.

By "spent" do you mean withdrawing cash too? If she took out cash during the period, then this would have an effect. If the min is 1% plus charges (or something similar), then those "charges" could include cash advance fees and could therefore vary each month.

Intoodeep

The minimum payment dropped after 30 day months (September & November), is there a connection there ?