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Minimum payments
photo36
Posts: 31 Forumite
in Credit cards
Hi, is it law that the minimum payment on credit cards should be the interest plus 1% of the out standing balance or just a guideline? I owe £5,500 on a Tesco credit card but the minimum payment is normally about £113 a month with approx £85 in interest added on so my payment doesn't dent the balance. I do make additional payments and hope to clear the balance in about 18 months it just annoys me that when I get the bill if I were to only make the minimum payment it wouldn't make hardly any difference to the debt.:j
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Comments
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On all new accounts, yes. On accounts pre Jan 2011, you could still have a different min payment formula.0
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My barclaycard was taken out last nov and is 2.5% of outstanding balance.......DEBT FREE AND PROUD
'Better to remain silent and be thought a fool than to speak out and remove all doubt'0 -
Is it not possible for you to apply for a balance transfer? £85 a month interest is a good incentive.0
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sistafromanothermista wrote: »My barclaycard was taken out last nov and is 2.5% of outstanding balance.......
It has to be at least 1% of the balance plus interest. Nothing to stop lenders choosing a higher %.
At a guess your APR is 18% or less - and if so it meets the criteria.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
It has to be at least 1% of the balance plus interest. Nothing to stop lenders choosing a higher %.
At a guess your APR is 18% or less - and if so it meets the criteria.
:wave: it's 0% and was a BT, 2.5% minimum but overpay by at least £60 at the mo. Snowballing the others cards first as their 0% ends sooner DEBT FREE AND PROUD'Better to remain silent and be thought a fool than to speak out and remove all doubt'0 -
Hi, is it law that the minimum payment on credit cards should be the interest plus 1% of the out standing balance or just a guideline? I owe £5,500 on a Tesco credit card but the minimum payment is normally about £113 a month with approx £85 in interest added on so my payment doesn't dent the balance. I do make additional payments and hope to clear the balance in about 18 months it just annoys me that when I get the bill if I were to only make the minimum payment it wouldn't make hardly any difference to the debt.:j
:wave: Hi Photo, there is a section on this forum that shows you how long it would take to pay a card off if you were just to pay the min i did it and was :eek::eek: soon spurred me to pay anything extra each month i can tell you
Good luck on the journey and to becoming debt free in the future you are not alone!!!DEBT FREE AND PROUD'Better to remain silent and be thought a fool than to speak out and remove all doubt'0
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