Flummoxed by decreasing balance yet INCREASING interest charges on Barclaycard

Smashingitnow

ryanm8655 said:

Set up a direct debit instead?

i find Barclays a pain as the DD has got earlier and earlier. It was coming out on the 22nd and this month it came out on the 16th.

i assume they’re running 4 week months or something, in order to make more money. Though mine is 0% anyway...

ryanm8655 said:

Set up a direct debit instead?

i find Barclays a pain as the DD has got earlier and earlier. It was coming out on the 22nd and this month it came out on the 16th

i assume they’re running 4 week months or something, in order to make more money. Though mine is 0% anyway...

Yes I noticed this!!! For anyone who was living month to month it really must result in them getting a lot of late fees...I know I advised I wanted the 16th of the month when I took out the card....it is that late perhaps once a year - usually it's the 13th-15th...
Anyway....the more annoying all the CC providers are the more determined I am to be free of them ever

enthusiasticsaver

As the balance on the card is so high even delaying payment by a few days will make a difference of about £5 or £6 a day.  So if you pay on the 13th then the interest the following month will be less than if you pay on the 16th.  That is a huge amount of interest to pay. You must be paying over £2k a year in interest alone so on £250-£280 a month you are going to paying that card off for years.  If that is the lowest APR and you have other debts charging more is it worth considering some sort of DMP to get the interest frozen on the debts?   How much debt do you have overall and are you comfortably making payments? 

Smashingitnow

Galloglass said:

the lowest debt APR I have

You must be an excellent customer for all these companies if you are willing to incur significant amounts of interest for "renting" their money over the short term. 

I see you have explained your outlook in this other thread of yours but it is an expensive way of maintaining a credit score.

https://forums.moneysavingexpert.com/discussion/6181237/5-000-miles-and-even-more-pounds#latest

What a weird response. I'm paying 70% of my take home pay each month to debt repayment, prioritising those debts with the highest APR and transferring to lower APRs as offers become available. I'm pretty bloody proud of myself.
Your disapproval means nothing to me but I'm sure everyone would like to hear your wonderful ideas as to how else this would be tackled? 
The debt was incurred after I was raped by a former boss and left the company without a job to go to and was out of work for four months and then under counselling at 100 GBP a week for a year, which saved my life. So yes with all else I was willing to incur rent money short time.
In honesty it's posts like this - snide remarks on topics that someone hasn't asked for advice for packed with assumptions that put me off forums.

enthusiasticsaver

enthusiasticsaver said:

As the balance on the card is so high even delaying payment by a few days will make a difference of about £5 or £6 a day.  So if you pay on the 13th then the interest the following month will be less than if you pay on the 16th.  That is a huge amount of interest to pay. You must be paying over £2k a year in interest alone so on £250-£280 a month you are going to paying that card off for years.  If that is the lowest APR and you have other debts charging more is it worth considering some sort of DMP to get the interest frozen on the debts?   How much debt do you have overall and are you comfortably making payments? 

I have just read your other thread which Gallo provided the link to and that explains the answer to my questions.  You are doing brilliantly to put so much of your income towards debt repayment and hopefully you will soon be able to start making a dent on that £8500.  Whilst I understand putting so much towards higher interest charging debts sounds sensible the balance is so big on the Barclaycard I would really start to focus on that asap. If you eventually going to start paying off more than £1k a month though it will come down.  Sorry to hear about how the debt occurred.  On the plus  side once the debt is gone you will soon be able to save a decent deposit. 

Smashingitnow

enthusiasticsaver said:

As the balance on the card is so high even delaying payment by a few days will make a difference of about £5 or £6 a day.  So if you pay on the 13th then the interest the following month will be less than if you pay on the 16th.  That is a huge amount of interest to pay. You must be paying over £2k a year in interest alone so on £250-£280 a month you are going to paying that card off for years.  If that is the lowest APR and you have other debts charging more is it worth considering some sort of DMP to get the interest frozen on the debts?   How much debt do you have overall and are you comfortably making payments? 

No DMP needed. I am paying 1300 - 1600 GBP off my debt each month. It will all be gone in less than a year. Thanks for the advice though, which I do appreciate. 

Smashingitnow

enthusiasticsaver said:

enthusiasticsaver said:

As the balance on the card is so high even delaying payment by a few days will make a difference of about £5 or £6 a day.  So if you pay on the 13th then the interest the following month will be less than if you pay on the 16th.  That is a huge amount of interest to pay. You must be paying over £2k a year in interest alone so on £250-£280 a month you are going to paying that card off for years.  If that is the lowest APR and you have other debts charging more is it worth considering some sort of DMP to get the interest frozen on the debts?   How much debt do you have overall and are you comfortably making payments? 

I have just read your other thread which Gallo provided the link to and that explains the answer to my questions.  You are doing brilliantly to put so much of your income towards debt repayment and hopefully you will soon be able to start making a dent on that £8500.  Whilst I understand putting so much towards higher interest charging debts sounds sensible the balance is so big on the Barclaycard I would really start to focus on that asap. If you eventually going to start paying off more than £1k a month though it will come down.  Sorry to hear about how the debt occurred.  On the plus  side once the debt is gone you will soon be able to save a decent deposit. 

Thank you so much!!! October 5 I will get 1250 paid to Barclaycard...I understand now what you're saying that I had focused just on the APR amount and not the size of the balance in prioritising cards and that this isn't the best way to do it.
Because the Barclaycard balance is so high, I'd be better tackling that, as the total interest charged is so high, and taking the hit on high APRs on the other cards, as their balance was much, much lower. I think that's what you're saying. Thanks again.

[Deleted User]

Smashingitnow said:

enthusiasticsaver said:

enthusiasticsaver said:

As the balance on the card is so high even delaying payment by a few days will make a difference of about £5 or £6 a day.  So if you pay on the 13th then the interest the following month will be less than if you pay on the 16th.  That is a huge amount of interest to pay. You must be paying over £2k a year in interest alone so on £250-£280 a month you are going to paying that card off for years.  If that is the lowest APR and you have other debts charging more is it worth considering some sort of DMP to get the interest frozen on the debts?   How much debt do you have overall and are you comfortably making payments? 

I have just read your other thread which Gallo provided the link to and that explains the answer to my questions.  You are doing brilliantly to put so much of your income towards debt repayment and hopefully you will soon be able to start making a dent on that £8500.  Whilst I understand putting so much towards higher interest charging debts sounds sensible the balance is so big on the Barclaycard I would really start to focus on that asap. If you eventually going to start paying off more than £1k a month though it will come down.  Sorry to hear about how the debt occurred.  On the plus  side once the debt is gone you will soon be able to save a decent deposit. 

Thank you so much!!! October 5 I will get 1250 paid to Barclaycard...I understand now what you're saying that I had focused just on the APR amount and not the size of the balance in prioritising cards and that this isn't the best way to do it.
Because the Barclaycard balance is so high, I'd be better tackling that, as the total interest charged is so high, and taking the hit on high APRs on the other cards, as their balance was much, much lower. I think that's what you're saying. Thanks again.

In terms of paying off your debt faster and becoming wealthier, you should always pay off the highest interest debt,  The size of the balance has no relevance.

Smashingitnow

Deleted_User said:

Smashingitnow said:

enthusiasticsaver said:

enthusiasticsaver said:

As the balance on the card is so high even delaying payment by a few days will make a difference of about £5 or £6 a day.  So if you pay on the 13th then the interest the following month will be less than if you pay on the 16th.  That is a huge amount of interest to pay. You must be paying over £2k a year in interest alone so on £250-£280 a month you are going to paying that card off for years.  If that is the lowest APR and you have other debts charging more is it worth considering some sort of DMP to get the interest frozen on the debts?   How much debt do you have overall and are you comfortably making payments? 

I have just read your other thread which Gallo provided the link to and that explains the answer to my questions.  You are doing brilliantly to put so much of your income towards debt repayment and hopefully you will soon be able to start making a dent on that £8500.  Whilst I understand putting so much towards higher interest charging debts sounds sensible the balance is so big on the Barclaycard I would really start to focus on that asap. If you eventually going to start paying off more than £1k a month though it will come down.  Sorry to hear about how the debt occurred.  On the plus  side once the debt is gone you will soon be able to save a decent deposit. 

Thank you so much!!! October 5 I will get 1250 paid to Barclaycard...I understand now what you're saying that I had focused just on the APR amount and not the size of the balance in prioritising cards and that this isn't the best way to do it.
Because the Barclaycard balance is so high, I'd be better tackling that, as the total interest charged is so high, and taking the hit on high APRs on the other cards, as their balance was much, much lower. I think that's what you're saying. Thanks again.

In terms of paying off your debt faster and becoming wealthier, you should always pay off the highest interest debt,  The size of the balance has no relevance.

Thanks! I must say after months and months of reading this forum, as well as my 'common sense' (as much as I have any!) this is what I thought. I don't understand why Galloway made his comment and what he thinks I ought to be doing...other than inventing a time machine and making different choices...which I am sure we all at times wish we could do. Thanks for saying this. I will stick to my plan and clear all debt in order of highest to lowest APR, other than minimum payements and the odd motivating small top up to reach a psychologivally significant milestone.