Monthly "Minimum" payments plus overpayments

moneysaver1978

We have a 17-month 0% NatWest credit card (12 months left and still under the recommended 30%-40% utilisation) and a monthly DD making minimum payment.

What do you folks do if you wanted to make just above the minimum payment, say an extra £10 or £20?

The 3 options offered for amending the DD is "Full Statement", "Minimum payment", and "Fixed". I would have liked to see "Minimum payment + overpayment" option. Fixed seems strange to me when the amount varies from month to month.

Do any other banks offer this kind of feature? If not, why not?

Dannii75

I wonder if you could set up a standing order through your bank for the additional amount each month? That way the minimum would be taken then the SO would be paid in. 

born_again

moneysaver1978 said:

We have a 17-month 0% NatWest credit card (12 months left and still under the recommended 30%-40% utilisation) and a monthly DD making minimum payment.

What do you folks do if you wanted to make just above the minimum payment, say an extra £10 or £20?

The 3 options offered for amending the DD is "Full Statement", "Minimum payment", and "Fixed". I would have liked to see "Minimum payment + overpayment" option. Fixed seems strange to me when the amount varies from month to month.

Do any other banks offer this kind of feature? If not, why not?

Doubt it as it would be to complicated to set up.

Just divide amount owed by 12, then add a additional payment & set that as your fixed amount.
Remembering not to spend on it anymore.

Or simply make a manual payment each month that you can afford. 

moneysaver1978

Dannii75 said:

I wonder if you could set up a standing order through your bank for the additional amount each month? That way the minimum would be taken then the SO would be paid in. 

Good shout!

born_again said:

Doubt it as it would be to complicated to set up.

Just divide amount owed by 12, then add a additional payment & set that as your fixed amount.
Remembering not to spend on it anymore.

Or simply make a manual payment each month that you can afford. 

I am surprised as I thought it wouldn't be too complicated and the minimum amount to pay is already calculated. You can make mortgage overpayments so the functionality should already be there.

Perhaps the issue is more down to legal rather than technical.

Hoenir

Dannii75 said:

I wonder if you could set up a standing order through your bank for the additional amount each month? That way the minimum would be taken then the SO would be paid in. 

Given cash allocation to accounts is automatic these days. This type of transaction would be bounced back (eventually). Administratively inefficent and costly. 

Is there an option online to make a debit card payment?  This is normally offered. 

grumbler

born_again said:

moneysaver1978 said:

We have a 17-month 0% NatWest credit card (12 months left and still under the recommended 30%-40% utilisation) and a monthly DD making minimum payment.

What do you folks do if you wanted to make just above the minimum payment, say an extra £10 or £20?

The 3 options offered for amending the DD is "Full Statement", "Minimum payment", and "Fixed". I would have liked to see "Minimum payment + overpayment" option. Fixed seems strange to me when the amount varies from month to month.

Do any other banks offer this kind of feature? If not, why not?

....
Just divide amount owed by 12, then add a additional payment & set that as your fixed amount.
Remembering not to spend on it anymore.

Or simply make a manual payment each month that you can afford. 

With a 0% card you want to pay as little as possible. I think moneysaver1978 wanted to pay a fraction more than a minimum because of alleged negative effect of minimum payments on the credit history.

Hoenir said:

Dannii75 said:

I wonder if you could set up a standing order through your bank for the additional amount each month? That way the minimum would be taken then the SO would be paid in. 

Given cash allocation to accounts is automatic these days. This type of transaction would be bounced back (eventually). Administratively inefficent and costly. 

...

I don't see any problem with 'cash allocation'. Can you elaborate?
ETA: if you mean after the balance is paid off, then it's easy to set the end date for the SO.

moneysaver1978

Hoenir said:

Dannii75 said:

I wonder if you could set up a standing order through your bank for the additional amount each month? That way the minimum would be taken then the SO would be paid in. 

Given cash allocation to accounts is automatic these days. This type of transaction would be bounced back (eventually). Administratively inefficent and costly. 

Is there an option online to make a debit card payment?  This is normally offered. 

How would a SO bounce back? Can you clarify?

grumbler said:

With a 0% card you want to pay as little as possible. I think moneysaver1978 wanted to pay a fraction more than a minimum because of alleged negative effect of minimum payments on the credit history.

Yep exactly but also to to keep the utilization as low as possible. We have tech already for autosaving and rounding up, I was surprised that there's no option to pay a bit more than the minimum payment especially if the paying account is in the same bank (so they have all the info already).

Nasqueron

You can already pay a bit more than the minimum - by doing the fixed fee or paying DD as minimum and paying extra on top manually. They won't offer minimum + 1% or whatever as it's just more ways for consumers to get in debt and then try and blame the bank for paying interest - the three 3 options are perfectly fine for 99.99% of users - I happen to do balance / number of months and pay it that way so I know the balance is cleared at the end and in the worst case scenario of say a job loss or whatever, I have been making good inroads into the debt, not the minimum with a huge capital sum at the end