Virgin Interest rate...and minimum payment issues!

Phil_H_3

Hi,
I've got a Virgin Credit card, now I've had it for a good couple of yrs but only really used it for balance transfers when special offers come up. In the last 12 months or so the interest rate has gone for about 12.9% to 29.9%!! Now that doesn't concern me at the moment as I have 0% again untill June or July next yr....

...But what does concern me is that since I done a balance transfer of £2500 the minimum payment has been less than 0.5% of the balance! Last month was £5 this month its £10? Are they doing it so that when the 0% period is up I'll still have a a fare bit on there for them to kill me with 29.9%? If it is then there messin with the wrong man....lol, I paid £70 last month and will do the same untill next yr sometime when I'll transfer it again.

Are they aloud to do this? i'm sure in the contract it says 2.5% of the balance...or 2.2%???


Thanks in advance


Phil

mogwai

hi - im not sure why they do this, it does seem a bit sneaky..

i have the same thing, i am paying £5 a month on a 2700 balance - but like you I have set up a fixed amount of 125 to try and clear it asap!

Moggles_2

It's calculated to keep you in debt.

Best plan is to set aside the money you would have used to make decent sized monthly repayments in a Cash ISA or similar, ready for when the promotion ends.

That way you're earning some interest on their dosh