Minimum Repayment Discussion

CannyJock

clairbear1000 wrote: »

I also noticed that despite over paying my cards, some of the estimated interest charges went up on the December statement. Is this something to do with end / beg of year or is there a longer period of time on the statements because of bank holidays?

C

Very possibly to do with the number of days in the statement period. I've never found the estimated interest to be very meaningful.

Enigma007

CannyJock wrote: »

Very possibly to do with the number of days in the statement period. I've never found the estimated interest to be very meaningful.

CannyJock wrote: »

Interest is calculated daily so could it be the fluctuation between 30 and 31 day months? On the up side, February is just round the corner

Good point, I hadn't thought of that. On the whole the pattern seems to fit with my interest going up where there are 31 day months however, where there are 2 consecutive months with 31 days (July-Aug/Dec-Jan) the following month the interest drops significantly. Hmmm had a look again and the following month (eg Sep) it falls significantly again. I think you may be right. Thank you both!

skoda1

I was told yesterday by Lloyds that I ought to take out a loan to pay back my Lloyds credit card as banks are going to be raising the minumum payment percentage to 5% - has anybody else heard about this?

CannyJock

skoda1 wrote: »

I was told yesterday by Lloyds that I ought to take out a loan to pay back my Lloyds credit card as banks are going to be raising the minumum payment percentage to 5% - has anybody else heard about this?

About minimum payments going up to 5%? Nope.

About banks trying to flog you something that's in their best interests and not yours? Yup, all the time.

The minimum payment increase is part of an ongoing discussion at the moment - there's absolutely nothing been decided on it and it's the old sales technique of telling you something that "rings a bell" to gain your confidence.

The best way to pay back your credit card (cheapest in interest and easiest to afford in terms of minimum monthly repayment) is on a long 0% deal, like the one from Virgin Money.

chattychappy

CannyJock wrote: »

the old sales technique of telling you something that "rings a bell" to gain your confidence.

Not CannyJock for nothing!

Cell

skoda1 wrote: »

I was told yesterday by Lloyds that I ought to take out a loan to pay back my Lloyds credit card as banks are going to be raising the minumum payment percentage to 5% - has anybody else heard about this?

This was a suggestion as part of the Government's Credit Card consultation process at the back end of last year. If there was one message from the hundreds of responses to the consultation it was that increasing minimum payments for existing debt holders would be the quickest way to financial armageddon anyone could dream up.

Now it wouldn't surprise me if some company somewhere tried it, but seriously how many people whohave even £5000 of debt could afford an increase in monthly payments from £125 to £250? Yes it would mean that their balance reduced more quickly, but equally I wonder how many people would be toast before six months was up?

Cell

For those that are interested this was the link. Just 742 comments to catch up with:cool:.

http://www.bis.gov.uk/comments-on-credit-consultation

elleess49

I have similar issues with Citi cards; my rate is a fixed for life of the loan offer of 5% with minimum payments at 2.5% on direct debit. If I miss a payment it shoots up to maximum rate. The problem is that after several phone calls I cannot get a clear answer from citi when asking to make additional payments or swapping to a fixed standing order. I need Citi to confirm that any change in payments will not activate a default and subsequently affect my 5% rate. How can I get a cast Iron agreement to get out of minimum payment without rthe risk of losing my fixed rate? Any suggestions please.

ltn

I've just been told by virgin money that I can't set a direct debit for more than min payment in case it does not cover the charges.

I said - isn't that my responsibility? I am not 5! (yes I was narked at been fed the obvious BS).

The guy told me it was because they are a responsible lender.

I never realised that the lenders were such nice caring people, Grrrr

CannyJock

ltn wrote: »

I've just been told by virgin money that I can't set a direct debit for more than min payment in case it does not cover the charges.

I said - isn't that my responsibility? I am not 5! (yes I was narked at been fed the obvious BS).

The guy told me it was because they are a responsible lender.

I never realised that the lenders were such nice caring people, Grrrr

Sounds like it's your first credit card? It's standard - although someone has mentioned that with Barclaycard you can manually adjust the amount of the DD each month