Minimum Payments on 0% Balance Transfer

Mindfull

Hello!

Well I managed to transfer my debt just in time thank goodness..but now I am being asked for a £57 minimum payment on my Barclaycard for my first month.

I think this may be the charge for the balance transfer fee but will I now expect minimum payments each month on this even though it is a % card?

I paid a minimum fee on my Natwest card which I stupidly tended to dip into - hence my needing to transfer the debt across to another 0% account.

If my balance on the 0% is roughly 2,500 how much am I likely to actually be paying each month as a minimum?

*scratches head*

Thanks!

InsideInsurance

Your terms and conditions will state what the minimum payment is each month. Some do it as simply a % of the balance were as others will do it as the interest + a % of the balance.

theone45

Barclaycard minimum payment is 2.25% of the debt, even tough you pay no interest for a certain period but you still have to make minimum payments. If you fail to make the minimum payment, the credit card company will take away any offer, which means you will loose the 0% and start paying full interest.

It seems its a common mistake when people make balance transfers for 0% expecting that you do not need to pay anything until the end of the offer. This is wrong... you still need to pay the minimum, but in this case all the money you pay reduces the debt and no interest is charged.

On 2500, the minimum payment they are asking seems about right, around £57. As the debt reduces, the minimum payment reduces as well, but always good idea to pay a little extra to help your credit score.

Paully232000

2.25% of the outstanding balance, so would be about 56 per month minimum, assuming you don't have any defaults or other charges to pay.

Baby_Angel

Yes you have to make minimum payments every month. It is part of the BT terms and conditions. I had to pay minimum payments with Nationwide, Tesco, MBNA and Barclays. So I believe it is common requirement by any credit card BT.

eskbanker

Baby_Angel wrote: »

Yes you have to make minimum payments every month. It is part of the BT terms and conditions. I had to pay minimum payments with Nationwide, Tesco, MBNA and Barclays. So I believe it is common requirement by any credit card BT.

It's not specifically associated with balance transfers - it's standard practice for all credit cards that a minimum monthly payment must be made, regardless of balance transfers or not.

LplateSaver

I am laughing at this thread.

Eskbanker sums it up perfectly..

eskbanker wrote: »

It's not specifically associated with balance transfers - it's standard practice for all credit cards that a minimum monthly payment must be made, regardless of balance transfers or not.

mozzy10

Mindfull wrote: »

Hello!

will I now expect minimum payments each month on this even though it is a % card?

Yes....It's a zero percent on interest card not a zero payback card!

Mindfull

Thank you! I know these questions seem very silly!

I was just a bit confused cos Natwest were only charging me roughly £25 per month on my balance so I wondered why Barclaycard's seemed so much higher but maybe they just juggle the % round a different way...

*scratches head a little less vigourously*

CLAPTON

Mindfull wrote: »

Thank you! I know these questions seem very silly!

I was just a bit confused cos Natwest were only charging me roughly £25 per month on my balance so I wondered why Barclaycard's seemed so much higher but maybe they just juggle the % round a different way...

*scratches head a little less vigourously*

what exactly is the difficulty?

what does natwest say your minimum monthly payment must be?
and what does barclaycard say your minimum payment must be?

if they are different then the payments will be different :
no need to head scratch : just need to read the T&Cs about minimum payments for the two cards and do the simple calculation

Paully232000

Nothing is silly if you don't know.

Natwests minimum payment is 1% of the balance, on 2500 is £25
Barclays is 2.25% of the balance, on £2500 is £56