Minimum Repayment Discussion

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  • janeyates
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    also my bank has just charged me £35 in debit commision.. what is it? does anyone know...
  • totalguitar
    totalguitar Posts: 166 Forumite
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    I usually pay my cards in full every month but decided to make a small purchase on a card I never use and then pay it off over 6 months.

    Purchase was £349.99 and my monthly interest rate is 1.4566%

    I had calculated a total interest of under £25 over 6 months but i've received my first statement for the purchase that advises the estimated interest on my next statement will be £9.06 with a minimum repayment of £25. No other purchases have been made on this card in the last year and none since the £349.99 purchase.

    Doesn't add up to me, can someone advise please and also tell me how much interest I will really pay over the 6 months (is there a simple formula).

    Thanks
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    edited 4 July 2009 at 11:21AM
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    Doesn't add up to me
    There will be 2 months worth of interest on your next statement.

    £349.99 x 1.4566% x 2 = £10.18 (close enough to their £9.06 estimate, based on the conditions on the reverse of your statement?)

    This calculator may be of interest (if you'll pardon the pun!)...

    http://www.makesenseofcards.co.uk/calcpay.html
  • TwinsMum_2
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    I have cut up my cards and now repaying them under new agreements, although Capital One have agreed to this, I pay them 40.00 a month and the interest has stopped, they say that after 6 months they want a final payment of 800.00, how does this work then, where do they think this is going to come from thin air. Sainsburys Bank are refusing to halt my interest even though they have agreed to a lower monthly amount I have to pay them a huge amount to, I can't make sense of it all really. Help would be appreciated .
    Claimed back almost £4000 so far from HSBC for mis-sold PPI
    £2083.00 + £242.00 8% interest from FirstPlus and lower monthly premiums:D Studio Cards paid off my account and gave me £125.00 in gift vouchers. £500.00 Barclays.
  • CannyJock
    CannyJock Posts: 3,838 Forumite
    Combo Breaker First Post
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    TwinsMum wrote: »
    I have cut up my cards and now repaying them under new agreements, although Capital One have agreed to this, I pay them 40.00 a month and the interest has stopped, they say that after 6 months they want a final payment of 800.00, how does this work then

    Impossible to say without knowing how much you owed them. They should be able to explain it to you if you phone them.
    TwinsMum wrote: »
    where do they think this is going to come from thin air.

    They won't really give it a lot of thought, the £4000 reclaimed from HSBC all gone?
    TwinsMum wrote: »
    Sainsburys Bank are refusing to halt my interest even though they have agreed to a lower monthly amount I have to pay them a huge amount to

    Have you already posted on the Debt-Free Wannabe board to see what advice you can get from others in the same boat? They'll probably point you towards the Citizens Advice Bureau.

    Don't think you'll get much luck with new 0% cards to clear your current cards.
    "A child of five could understand this. Fetch me a child of five." - Groucho Marx
  • joe022
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    :confused:Set up a direct debit payment with Marbles credit card and they are charging more intrest than the min payment so my bill is going up, will have to phone them as this cant be right.
  • dtaylor84
    dtaylor84 Posts: 648 Forumite
    First Anniversary Combo Breaker
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    I usually pay my cards in full every month but decided to make a small purchase on a card I never use and then pay it off over 6 months.

    Purchase was £349.99 and my monthly interest rate is 1.4566%

    I had calculated a total interest of under £25 over 6 months but i've received my first statement for the purchase that advises the estimated interest on my next statement will be £9.06 with a minimum repayment of £25. No other purchases have been made on this card in the last year and none since the £349.99 purchase.

    Doesn't add up to me, can someone advise please and also tell me how much interest I will really pay over the 6 months (is there a simple formula).

    Over 6 months (ignoring the minimum payments each month which will significantly reduce the amount of interest):

    349.99 * (1.014566^6) - 349.99 = £31.72 in interest.

    But your first statement (that you just received) will be somewhere between 0-31 days after the transaction, and will not show any interest (as none will be owed if you pay the balance off in full by the due date of this statement).

    When you receive your next statement (without clearing the balance) they will calculate the interest for those 0-31 days (up to £5.10), subtract the minimum payment, then add the interest for next month, which would be somewhere around £4.80, for a total of up to £9.90.

    So your statement sounds about right.
  • dogsrus
    dogsrus Posts: 30 Forumite
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    I have an A & L card and the past few months they have taken the requested amount by direct debit but then added a default sum of £12-I couldn't work out what I had done wrong until I realised that they were quoting one amount for the minimum payment but taking a slightly lower (about 80p) amount from my bank account. Is this legal? I am worried about confronting them in case they withdraw the facility as I am unable to repay in full what I owe. Obviously I will pay the extra from now on but I have accumulated more debt this way and probably damaged my credit file. Any answers would be greatly appreciated.
    dogsrus
  • I contacted Sainsbury's credit card people a year ago to say that I have become disabled with no chance of working again. I was not offered and did not know then about a payment protection plan, so obviously havn't got one. I asked whether I could reduce my monthly mimimum payments, even though I knew it would take longer to pay off the debt. I have never used the credit card since becoming disabled, and it is the only credit card I have. I was told I would have to take out an IVA and that was the only option I had. My minimum monthly repayment is around £75 and I know a lot of people would be happy to have this monthly amount to pay but I only receive disability living allowance and this is a formidable amount each month. Can anyone give me any suggestions please? Thank you.
  • izools
    izools Posts: 7,513 Forumite
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    Write to them.

    Enclose an income and expenditure sheet from here:

    http://www.nationaldebtline.co.uk/england_wales/budget_sheet.php?country=england_wales

    If you only receive state benefits and have no wage also cite the Social Security Act 1992 in your letter:

    Social Security Administration Act 1992 Section 187:

    187.—(1) Subject to the provision of this Act, every assignment of or charge on–
    (a) benefit as defined in section 122 of the Contributions and Benefits Act;
    [3(aa) a jobseeker’s allowance;]
    (b) any income-related benefit; or
    (c) child benefit,
    and every agreement to assign or charge such benefit shall be void;


    Explain in your letter that should the debt go unpaid and legal proceedings undertaken, no court in the country would agree to ask you to pay as this would be a clear breach of the Social Security Act.

    Also explain that you have been generous in your offer given that, at law, you are under obligation to pay £0.

    Advise that your offer is £5 per week, and in exchange you expect all interest and charges to be suspended. Explain that this offer would be considered generous by any legal body given your current circumstances.

    That should shut 'em up good and proper!

    Good luck, keep us posted, and sorry to hear about your health issues :o
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