Minimum Payments

Freddyforrest

Hi All,

Let me first start by saying that my girlfriend is absolutely useless when it comes to money and credit cards (although she makes up for this by being an excellent mother amongst other things!!! )

Many years ago before I met her she took a credit card out, set up a minimum payment DD, at some point about 8 years ago she must have exceeded her credit limit, but by this time she had moved out of her prenatal house and hadn't changed the address on her credit card statements.

The minimum payment wasn't getting her under the credit limit and has therefore been fined every month for the last 8 years or so (she hasn't used the credit card since then once). What was a £300 debt has ballooned to over £1,600.

I am going to pay her remaining debts off for her and was wondering if there was anything I could do about getting this bill reduced a bit?


Regards

Freddy

Superscrooge

Freddy,

The minimum payment rules state;

'The minimum repayment will always cover at least interest, fees and charges, plus 1% of the outstanding balance'

So it should not be possible for debts to balloon as you have described if no further purchases have been made on the card and the minimum payments have been made each month.

I suggest contacting the credit card company and getting copies of all the statements and payments to try and confirm what has happened?

grumbler

Superscrooge wrote: »

Freddy,

The minimum payment rules state;

'The minimum repayment will always cover at least interest, fees and charges, plus 1% of the outstanding balance'

So it should not be possible for debts to balloon as you have described if no further purchases have been made on the card and the minimum payments have been made each month.

This is possible if "at some point about 8 years ago she must have exceeded her credit limit" and CBA to get the balance back under the limit. If so, it's well deserved £1600 and it's good for her that she'll find it very difficult to get any new credit. Hopefully, the OP isn't financially associated with her.