Minimum Repayment Discussion

latecomer

But you can still pay more than the minimum if you have a direct debit set up. Just phone then and make a debit card payment for the extra amount you want.

kinsington

I've always made the full payment and got rid of some of my cards. The interest rates are so high and I could see I was wasting so much money this way. I once got caught by the fact that some card companies make the default minimum payment unless you specify otherwise. Now I'm extra careful to always pay back as much as I can, and even the whole balance if possible every month. It helps keep my credit well within budget.

hilstep2000

Martin is saying that some companies are not allowing you to pay off more than the minimum on a Direct Debit. Well Lloydstsb online banking allows you to set up transfers and payments. When I get my bill, I decide how much I want to pay, (whether it's a bit or in full) and tell the bank when to pay it. Never worry about missing a payment, and I decide how much.

loveandlight

Amex take the view that if you are only making minimum repayments then you are struggling financially and are likely to go under as 'those who can afford to pay more, usually do'.

spendaholic

I just asked Tesco Personal Finance for a fixed direct debit and they refused, saying even if we wrote it on the DD form it would be refused. We can pay the minimum or the full amount, or set up a standing order for a fixed amount and cancel the DD. I think I may do that with all of my cards, setting them up on online banking to do it automatically from there, and review it periodically. I'm also going to cut up all but one of my cards. I know Martin encourages us to keep the card(s) but I think I have to discipline myself to have just one for genuine emergencies.

Sorry for bumping this to the top. Our firm are currently negotiating a 10% reduction in salaries across the board, as are many at the moment, and it's given me the kick start I need to finally get my finances into check, but having started from the beginning again I'm catching up on all the old threads and articles.

burblebloke

Took out a Virgin 0% card to transfer a balance of c£3k. Set up standing order to pay off minimum £5 but after a few months they changed the minimum to £25. I didn't notice so they charged me a penalty of £12 and withdrew the 0% rate. When I 'phoned they refused to refund the penalty or interest but agreed to re-instate the 0%. Next statement included interest so I phoned and they denied offering to re-instate. I've now applied for a 0% Tesco card. Jeez, you've really got to be careful with these people, they'll shaft you at every opportunity!

NickX

burblebloke wrote: »

When I 'phoned they refused to refund the penalty or interest but agreed to re-instate the 0%. Next statement included interest so I phoned and they denied offering to re-instate. I've now applied for a 0% Tesco card. Jeez, you've really got to be careful with these people, they'll shaft you at every opportunity!

If they have agreed to re-instate the 0% rate, then that is a verbal agreement that is legally binding.

I would pursue this with them and demand that they listen to the telephone call. If they do not play ball, then raise a formal complaint, and if that does not prove fruitfull then after 8 weeks you have the option of going to the FOS (Financial Ombudsman Service).

janeyates

i have just done a balance transfer to a 0% card and feel better for doing so, but i owe argos card £2000 with a 27% intrest rate. i asked if i could transfer onto new card but they said argos dont allow this so il have to increase my payments to £100 a month to get it down but the thing is im into my £1,300 overdraft by £1,000 and cant seem to get it down. would i be better drawing the money off my new 0% for 14mths credit card and paying off my over draft then just pay that off every month at a higher amount or should i just try to muddle through

missbargain

bigbloke45 wrote: »

One of the big problems of paying off credit cards with a direct debit is that you can usually only opt to pay the minimum or clear the whole balance. There may be some cards that will allow you to pay a fixed amount of each month, but I don't know who they are. Anyone out there like to tell me who, please?

I don't believe that this applies across the board any more. I have two credit cards that I have set up DD for (Halifax and Barclays) and both companies allow you to choose whether to pay the minimum amount (£5) or "other amount" where you yourself choose the amount you want to pay (online payment option).

janeyates

the thing is i dont really understand the balance transfers as i have a tesco credit card that ive transfererd another debt to, but i wanted to know if i could draw cash off it to clear my bank overdraft