Paying chunks of credit card but min payment not coming down

MOGGYMALONE

Hi, i'm trying to get my credit card paid off and am paying quite big chunks off it like this month i've paid over a grand off but the minimum payment hasn't reduced that much maybe only by about £15? i have made the payments in sums of varying amounts on different dates when i've worked out how much i cud throw at the card but thought it would have come down a lot now. For an outstanding balance now of £1999 i have to pay min £72 a month? i have another card with less than that on it and pay only min £15 a month but i'm trying to pay the highest interest rate card off first.

Is it cuz the computer system won't have caught up with the recent payments????

mog

molerat

How much extra are you throwing at the card ? How much is the interest per month ? If it is a high % card the minimum payment is probably only just, if at all, covering the interest so you will be caught in the interest trap. Are you still spending on these cards ? Post up all the figures from both cards and someone knowledgeable will be able to give you a pointer in the right direction.

CLAPTON

usually the back of your monthly statement will tell you the rules for working out the minimum monthly payment

what do yours say?

MOGGYMALONE

Will get details and post later ...i don't get statements so will have to check back and see original docs ...to be continued ...

MOGGYMALONE

Ok cringe...i'm not sure what the interest rate is on my Nationwide Card but from the documents i can find i think its 19.9%! so at the moment i am down to £1999 on that. I also have another card with Natwest but was zero per cent offer which has expired but ashamed to say no idea what the rate is on it now. Will ring them tomoro to find out. I'm hoping to pay about £500 off the nationwide card at end of March all being well or shud i move everything to natwest (if rate is lower? need to check limit?) or get a new zero per cent?
any advice welcome, mogs

Gurranes

It depends on how they work out your minimum payment. If they use a straight 2.5% or 3% of balance you should see a drop in minimum payment the following month on a large payment you have suggested.

However if it is the new payment method Interest + Fees + 1% of the capaital balance you may not see a drop in the minimum payment required until the following statement. This will be because the interest is totted up as you go along. The interest on your £1999 balance will probably be accruing in the background each day and will then be added to your next statement, even though you have paid off £500. So the minimum pay will look much like the previous one. But after that you should see a difference.

Your doing the right thing paying down the high rate as quick as you can. (Check that NatWest rate).

If you can get a new 0% card go for it as long as you don't start using the old cards again. Check for balance transfer fees, or if your curent card takes Credit Card payments and the new card has a 0% retail spend offer you might be able to transfer the balance as a transaction rather than a balance transfer.

MOGGYMALONE

Thanks, i noticed online that the statement for next month is already calculated so I am hoping that the following statement might be adjusted.
Going to ring natwest today regards their interest rate.
Defo want rid of these cards and I'm reluctant to get any other cards cuz spending on the old cards is how i ended up in this situation.
Thanks for your comments.
mogs

MOGGYMALONE

Arrgh 16.9% on Natwest....i cant believe how much money ive wasted on these cards. Lesson learned.
thanks for all your posts re above. Mogs

MOGGYMALONE

Update - finally cc company has reduced minimum payment to about £52 per month not a huge reduction but an improvement.
My advice - never get a credit card. save up instead
moggy