Barclaycard changing their minimum payments

footjoy

I am wondering how much you have to pay back each month to avoid falling into persistent debt.

Would I be right in saying that if you had an interest charge of £35, a minimum payment of £60, you should pay £70, that is, double the amount of the interest and fees?

Ergates

footjoy wrote: »

I am wondering how much you have to pay back each month to avoid falling into persistent debt.

Would I be right in saying that if you had an interest charge of £35, a minimum payment of £60, you should pay £70, that is, double the amount of the interest and fees?

Pretty much - you need to pay *at least* double the amount of interest, charges and fees. I'd stick another £1 on there, just to be safe.

mro

Ergates wrote: »

Pretty much - you need to pay *at least* double the amount of interest, charges and fees. I'd stick another £1 on there, just to be safe.

I agree.

You need to pay off an amount on the main balance equal to the interest as well as the interest itself.

So double the interest is about right.
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mro

mro wrote: »

Anyone else had a letter from Barclaycard changing their minimum monthly payments from the Sep statement ?

I have now received a similiar letter for my other Barclaycard Visa card, same conditions & rates as on my other Barclaycard Visa card (was a Mastercard up to Apr 2016), I started thread about.

Highest of:

• £5
  
• 2.25% of main balance
  
• Interest (~1.33%/month) + 1% of main balance (was 0.1%)

I assume they are changing minimum payments for all their credit cards.
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mro

mro wrote: »

Anyone else had a letter from Barclaycard changing their minimum monthly payments from the Sep statement ?

I have now received a similiar letter for my other Barclaycard Visa card, same conditions & rates as on my other Barclaycard Visa card (was a Mastercard up to Apr 2016), I started thread about.

Highest of:

• £5
  
• 2.25% of main balance
  
• Interest (~1.33%/month) + 1% of main balance (was 0.1%)
  ........... =2.33% of main balance (was 1.43%)

I assume they are changing minimum payments for all their credit cards.
.

Minimum payment should be set at 2x interest to avoid persistent debt condition
or 2x 1.33% =2.66%.
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