Barclaycard insisting on monthly repayments

Steel_2

I took out a Barclaycard recently on a 14 month 0% offer and when I rang to activate the card was told I had to set up a direct direct every month to pay the balance off.

I have done so, but really I can't afford for that money to be going on a 0% debt when I have other debts to pay with bigger APRs.

Is there any reason why I can't cancel this direct debit payment and just leave the money sat there? Or are Barclaycard going to request the full sum to be paid off if I do so?

inmypocketnottheirs

Even though it is 0%, do you still not have to make the minimum repayment each month?

KTF

Yes, you have to pay at least the minimum each month. If you do not pay the min every month they will probably withdraw the 0% offer.

Paul_Herring

KTF wrote: »

Yes, you have to pay at least the minimum each month. If you do not pay the min every month they will probably withdraw the 0% offer.

There's no 'probably' about it.

If you don't make the minimum repayment, they WILL withdraw the 0%.

Steel wrote:

Is there any reason why I can't cancel this direct debit payment and just leave the money sat there? Or are Barclaycard going to request the full sum to be paid off if I do so?

If you cancel the DD, and subsequently refuse to pay the minimum (after they've taken your 0% away) they'll treat your account as delinquent after a couple of months and demand full repayment of the loan. Along with any interest and late payment fees incurred.

Pay the minimum. Also pay the minimum on all the lower APR loans you have. Use what's left to snowball off your highest APR. Once that's gone, attack the next highest APR. (This assumes, of course, that you have sufficient money each month to at least pay the minimum on all your debts.)

Steel_2

Sorry I didn't make it clear - I am currently paying £100 at their suggestion as it would pay off my £1400 balance within the 0% offer time period.

Actually my minimum balance on this card is £29. I have another credit card - an egg card at 17.9% with £900 on it - so I would rather pay the difference on that.

Thanks for the help everyone. I'll ring up Barclaycard and reduce the payment to the minimum then add the difference to the egg card.

Paul_Herring

Steel wrote:

Sorry I didn't make it clear - I am currently paying £100 at their suggestion as it would pay off my £1400 balance within the 0% offer time period.

Hopefully I'm stating the obvious here, but at the end of the 0%, you will have a balance left which you will either need to transfer to another 0% (or transfer one of your other balances to a 0%) or you'll have to take this card into account when you're snowballing the highest (then) APR.

Steel_2

Yep!! But no problem hearing it again - and someone else reading this might not realise.....

I have periodic updates in my diary so I don't forget to find another deal in time to transfer.

This was one of my biggest problems in the past, but I'm a bit more clued up about the possible financial consequences caused by not remembering this time.