Minimum Repayment Discussion

borris89

no, i have never neaded ppi, and always made sure not to have it. Do you have any details on this legislation, as it look like i will be needing a very long discussion with them!

[Deleted User]

Speak to your card provider. Ask them to explain why your balance is increasing. They should have either not repriced you OR increased your min payment accordingly to cope with it. If they have done neither you probably have a case for them refunding the interest and pricing you back down. If not, then complain to FOS.

As far as I know, the only exception to this are PPI and a high cash balance.

borris89

Many thanks zx81, will call them up and give them a chance to explain, will let you know how it goes.

stoney24

I'm after some advice with regards to how to go about getting myself out of debt in the shortest possible time. I spent my youth gettign myself into debt and now I'd like to think that i'm much better with my money and would liek to get myself out of it!!

At the moment I have the following debts and am after suggestions on whether to consolodate them or keep them seperate.

£2000 interest free to my very kind mother at £100/month
£4700 at 8.8% with 36 monthly payments left at £147/month
£1966 on a credit card with minimum payments. Last month the minimum payment was £32.65 which included £28.66 interest!!!

I know that the bank of mum loan should continue to be repaid seperately due to the zero interest but how can i consolodate the other two borrowings into one payment that I would ideally like to get paid off within 2 1/2 to 3 years.

Thanks in advance!!

chattychappy

stoney24 wrote: »

I'm after some advice with regards to how to go about getting myself out of debt in the shortest possible time. I spent my youth gettign myself into debt and now I'd like to think that i'm much better with my money and would liek to get myself out of it!!

At the moment I have the following debts and am after suggestions on whether to consolodate them or keep them seperate.

£2000 interest free to my very kind mother at £100/month
£4700 at 8.8% with 36 monthly payments left at £147/month
£1966 on a credit card with minimum payments. Last month the minimum payment was £32.65 which included £28.66 interest!!!

I know that the bank of mum loan should continue to be repaid seperately due to the zero interest but how can i consolodate the other two borrowings into one payment that I would ideally like to get paid off within 2 1/2 to 3 years.

Thanks in advance!!

The credit card rate looks like being about 19%. If you can get more credit (loan, credit card or otherwise) at a lower APR, you should move the debt. Eg by doing a balance transfer to a new credit card. If not, use any extra cashflow to pay off this credit card. Don't just pay the minimum. Frankly most of your debt is on either 0% or 8.8%, so overall you're not being ripped off.

noks

Would someone mind telling me how paying more than the minimum payment works...?

If I paid in money between my statement date and the date the Direct Debit is took, how do they then work out minimum payment and interest when my DD is took? And is this always on the outstanding balance (for example, I was spending after the statement date)?

Thanks guys,

Chris.

immoral_angeluk

noks wrote: »

Would someone mind telling me how paying more than the minimum payment works...?

If I paid in money between my statement date and the date the Direct Debit is took, how do they then work out minimum payment and interest when my DD is took? And is this always on the outstanding balance (for example, I was spending after the statement date)?

Thanks guys,

Chris.

They work it out on the balance of whatever day they calculate it.

reall

With a disposable income i calculated that you could pay the following and be out of debt almost in two/three yeaRS FOR THE CREDIT CARDS.

Mint :302.00

egg : 432.00

virgin 559.28

by this formula you would have 55.94 not used. With this pay it on top of the virgin to make it 615.22 until the debt is finished or for 12 months then put the 55.94 onto the egg repayments and so on. do not use the card s to purchase or spend at all.use a prepaid card to load on instead.

You have probably done this already

worked it out by dividing the APR by 12 THEN DIVIDE BY TOTAL OF DEBT FOR THE CARD TIMES 1350.00

EG.VIRGIN 2.9%(per month) divide by 7000 x 1350.00 = 0.55928 then changed to 2 decimal places=559.28
and then add up all the figures for a total of 1294.06
subtract from 1350.00=55.94
add 55.94 to highest debt percentage=559.28 add 55.94=615.22
this helped me slash from 15,000 to now 6,500.00 or alternatively when one debt is finished put all the funds that were for the finished debt onto the next card.
Either way you will get out debt free.:);)

clarebearuk

I just wanted to make users aware that although MSE recommends setting up a direct debit to your credit card so you don't forget to pay - which does cause real problems like £12 fee and losing a 0% deal (I have first hand experience of this!) - I discovered that my Barclaycard will only let you make one payment per month to your card, which prevents topping up your payments after paying the minimum.

After discovering this I switched cards, but wanted to warn other people to check with their providers before setting up a direct debit.

This was some time ago so I don't know if banks have been forced to change this policy, which clearly does not help people pay off their debt, especially if you are paid weekly and want to make smaller payments throughout the month! :mad:

Cash_Beazt

CHECK YOUR STATEMENTS

8 months ago I took out a balance transfer with Santander. Ever since the start I have asked them repeatedly to increase the minimum payment. I have written to them twice,have been into a branch twice and rang up several times. My introductory rate is coming to an end pretty shortly and they have REDUCED the minimum payment. I have paid the minimum payment plus made my own manual over payments. I know some people may expect that the increase was in place after the first request and neednt check.Only to get a nice surprise when your introductory rate ends and they load a massive chunk of interest on and you only realise when you finally check your statements.