Aqua -booster payments

Dandytf

Unfortunately didn't take the cost details.
Noticed online today Aqua re payment calculator offers a 'Booster Payment' option-in addition to min or full.
The booster option seemed somewhat considerably more than minimum payment though I can't quote what format or % they are requesting.
Nice option though to aim to reduce balance sooner with less interest.
Any mser know what the cost or format Aqua are using.

A4445

I!!!8217;ve seen the same thing on one of my NewDay cards, but pay in full so no idea how they work about an amount.

SnowTiger

Dandytf wrote: »

Unfortunately didn't take the cost details.
Noticed online today Aqua re payment calculator offers a 'Booster Payment' option-in addition to min or full.
The booster option seemed somewhat considerably more than minimum payment though I can't quote what format or % they are requesting.
Nice option though to aim to reduce balance sooner with less interest.
Any mser know what the cost or format Aqua are using.

I can't find any figures.

Aqua says this about it:

Boosted Payment

Here's an example of how a boosted payment can help you clear your balance faster. If you had a purchases balance of £1,000 with an interest rate of 39.9% per annum, and you only paid the contractual minimum payment each month, it could take 20 years and 11 months to pay it off. You would pay £2,580 in interest alone. However, if you made a boosted payment each month of £71.00 this could reduce to £640 and you'd pay off your balance in just 6 years and 8 months. This example assumes you do not miss any payments, your interest rate does not change and there is no further spend.

That's obviously incorrect.

In their example, if you made a "payment each month of £71.00" you would pay them £5,680 during the 6 year and 8 month period they mention.

Back of an envelope calculations suggest the "boost" payment is a percentage of the outstanding balance, perhaps about the same as the interest that's charged each month.

Perhaps the FCA's recent proposal that credit card companies should help punters who are in persistent credit card debt has something to do with it.

Some credit card companies set their minimum payment at the greater of £25 or 2.5% of the outstanding debt, which seems sensible.

Aqua's minimum payment is the greater of £5 or 1% of the outstanding balance.

Dandytf

I enjoy their re payment calculator..
I have increased my min payments -not by the new booster option.
What I'm working towards is 2021 clearance which is affordable within my home budget.
Maybe I'm not far away from ther booster amount -it would be nice to know what their formula is,

T-G-C

SnowTiger wrote: »

I can't find any figures.

Aqua says this about it:



That's obviously incorrect.

In their example, if you made a "payment each month of £71.00" you would pay them £5,680 during the 6 year and 8 month period they mention.

Back of an envelope calculations suggest the "boost" payment is a percentage of the outstanding balance, perhaps about the same as the interest that's charged each month.

Perhaps the FCA's recent proposal that credit card companies should help punters who are in persistent credit card debt has something to do with it.

Some credit card companies set their minimum payment at the greater of £25 or 2.5% of the outstanding debt, which seems sensible.

Aqua's minimum payment is the greater of £5 or 1% of the outstanding balance.

You are defintley right on the FCA part, Aqua never offered this before and recently the booster option has appeared on my options list, as my balance was carried for almost 12 months, half of which was on 0%, so it makes sense for them to apply it to mine especially.

To back your theory even further, I have another NewDay card which is fresh and there is no booster option. Normally, NewDay would roll-out such a feature to all of their cards as they use the same interface and system, so I doubt that this is an Aqua exclusive feature, but I could be wrong. All NewDay cards have the same internal mechanisms, it is just the branding face of the card and online panel that is different.