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Why is my balance increasing?

Hi all,

I have a Barclaycard and I'm confused. I have a rather large balance approx £8600, I'm making the minimum payments currently in the hope of paying more in the future. I'm not using the card anymore and yet my minimum payments are increasing each month and my balance is going up. I assume the minimum payments are not covering the interest - is this the case with Barclaycard? I thought I would at least be chipping away at the balance albeit very slowly.

Can anyone advise?

Thanks
£10 a day challenge
£100.16/£310

Comments

  • Drp8713
    Drp8713 Posts: 902 Forumite
    Ninth Anniversary 500 Posts
    Yes, likely your interest is higher than your minimum payment.

    What's your APR and how much is your minimum payment.

    Have you tried to balance transfer it to a 0% or low(er) rate card?
  • I'm not sure about that, because usually the minimum payment would be 1% plus interest, or £5, whichever's greater. So you should still be chipping away at it.
    Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.

    ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.
  • Supadupa
    Supadupa Posts: 104 Forumite
    Hi, thanks for that. I believe the APR is 26% and the minimum payment is 3%. I'll look into switching cards, not sure I'll get one but even if I can transfer some of the balance that would help.
    £10 a day challenge
    £100.16/£310
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 23 June 2014 at 11:42AM
    I'm not sure about that, because usually the minimum payment would be 1% plus interest, or £5, whichever's greater. So you should still be chipping away at it.
    Absolutely: Read summary box
    I am pretty sure it's the same for all their cards, and I believe there is some legal requirement for this. The interest and the min payments can vary slightly because of the different numbers of days in months.


    @Supadupa
    Stop making assumptions and check your Summary Box and your statements at last.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Supadupa wrote: »
    Hi all,

    I have a Barclaycard and I'm confused. I have a rather large balance approx £8600, I'm making the minimum payments currently in the hope of paying more in the future. I'm not using the card anymore and yet my minimum payments are increasing each month and my balance is going up. I assume the minimum payments are not covering the interest - is this the case with Barclaycard? I thought I would at least be chipping away at the balance albeit very slowly.

    Can anyone advise?

    Thanks





    post the actual facts for 2/3 consecutive statements
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