Credit card help please

Tomothy123

Total newby, haven't got a clue about credit cards and after some advice please.

I've just taken out a balance transfer card with Barclay card. 32 month platinum balance transfer card.

I have transferred £3751 from an existing card to the new Barclaycard.

Can someone please tell me what the minimum repayments will be on this per month so I don't have to pay interest.
I understand that it will take longer for me to pay off but I can just get another balance transfer at the end of the 32months.

For example if I only pay £50 a month, will I get charged interest on the full amount of £3751? I'm so confused.

Thank you in advance

A4445

You won't pay any interest until the 32months are up as long as you keep up paying the minimum payments. I believe the minimum will be at least 2% of the outstanding balance so it's going to be more than £50.

Tomothy123

Thank you, so if I only pay £50 per month will I lose my 0% interest offer?

CakeCrusader

I have a balance transfer with Tesco at 0% for 24 months. In the terms and conditions I have, it says they will withdraw the offer if I don't pay the minimum balance on 2 occasions, but your terms and conditions may be different so it's worth checking your paperwork. I don't think 2% of £3715 is £50, so it may be wise to wait for the statement.

YorkshireBoy

It seems you've applied for a financial product without even reading the summary box, let alone the T&Cs!


The Barclaycard minimum payment is 2.25%, so if you pay only £50 you'll lose the 0% deal and incur a £12 missed payment fee.

A4445

If my maths is correct the minimum payment would be £84.39 but this will go down as the balance goes down.

Dobbibill

Don't mix purchases with the BT offer either or you will incur interest on those purchases.

Your balance will be slightly higher than the amount you transferred too due to the BT fee (this is not an interest charge though)

Placitasgirl

I'm sure you realise that reading the Terms & Conditions (T&Cs) of any product is key to understanding the commitment you have taken on, and although it's a bit like putting the cart before the horse, suggest that you do so now with your new credit card.

You will receive a monthly statement which tells you what the minimum payment you must make is, and when your payment needs to reach the card to avoid incurring additional charges/late payment fees/loss of promotional offers. I'd highly recommend setting up a Direct Debit (DD) for this payment so you don't have to think about it, it'll just be claimed from your bank account.

Many suggest making the minimum payment plus an small amount extra (even £1) so that you're not only ever making the minimum payment.

Please note that if you plan on "tarting" your balance, or transferring it to another 0% deal at the end of your current agreement it is vital that you understand your current T&Cs and adhere to these. Failing to make the minimum payment, or late payment can have a significant impact on your credit file and could prohibit you from promotional offers in the future.

Superscrooge

Tomothy123 wrote: »

............................ I can just get another balance transfer at the end of the 32months.

Very dangerous thinking to assume you will always be able to transfer your debt.

These forums are full of posts from borrowers caught out by assuming they would always be able to 'kick their debt into the long grass' by making multiple balance transfers.

Save as much as you can so that you could repay your debt after 32 months in you had to.

McKneff

Why not pay as much as you can over and above the minimum payment and get yourself out of the debt hole you are digging for your self otherwise you will be in debt for the rest of your life. And it has a habit of getting slowly worse and worse, which I'm sure you are finding now.

Tomothy123

Thanks everyone for the advice.
I did read the T&C's but I was just more confused, so came here for it to be explained in more laymans terms.
Direct debit is already set up to pay the minimum repayment... I was just curious if I could pay less per month, but obviously that's not an option!
Thanks again