Min payments on credit card

dazzaofdagenham

Hi
Got a letter from Halifax the other day saying they have noticed I have only been paying minimum payments on my card for a few months.
This is true, balance is about 250 pounds have have just left it after bringing balance down from about 2500 from about October last year.

Them sending me this letter, is that a problem for me or them ?

Also what would be the best day to make a extra payment ?
Statement date is normally the 8th and direct debit is normally the 1st of month.

Thanks

[Deleted User]

It's a problem for you, and good for them, assuming you're paying interest.

Make extra payments as early as you can, whilst always making your contractual payments by the due date.

Thrugelmir

dazzaofdagenham wrote: »

Got a letter from Halifax the other day saying they have noticed I have only been paying minimum payments on my card for a few months.

What else does the letter go on to say?

realaledrinker

I got a similar letter from Clydesdale. They sell u a long term 0% on purchases deal then note you are only paying off the minimum. Doh!!

dazzaofdagenham

Deleted_User wrote: »

It's a problem for you, and good for them, assuming you're paying interest.

Make extra payments as early as you can, whilst always making your contractual payments by the due date.

The min payments is setup as a direct debit..

dazzaofdagenham

Thrugelmir wrote: »

What else does the letter go on to say?

Says about interest and longer to clear balanc if I'm only paying min each month.
Surprised they monitor this kind of info.

[Deleted User]

It's s legal obligation, though they don;t need to do it if you're on a 0% promo rate.

Plus of course, they want to know who's making them the most money.

adindas

Deleted_User wrote: »

It's s legal obligation, though they don;t need to do it if you're on a 0% promo rate.

Plus of course, they want to know who's making them the most money.

Good point, so in the future they could always say they have done enough to prevent people into the debt trap.

But the problem here is that some of this data is recorded into your credit file. You will never know who will be scrutinizing you on major credit application, this file could be read by lazy, inexperience, novice and /or incompetent underwriter who will make their own decision against you??

[Deleted User]

That's why avoiding making only min payments has always been recommended.

dazzaofdagenham

Suppose I can understand the point here

I set up a direct debit to cover the min payment each month, this ensures I can never miss a payment each month

Or

That can be read as, look at him lazy to only afford the min payment each month

[Deleted User]

Min payers are statistically much higher risk than those who pay in full.

Also of course, potentially much more profitable.