MSE News: Barclaycard's cutting minimum repayments – you could be in debt YEARS longer

MSE_Petar

If you've got debt on a Barclaycard, it's likely the minimum you have to repay each month will be cut from July, as the bank is changing how repayments are set for millions of customers. If you're unaware, and don't act, you could stay in debt for many years longer and pay possibly £1,000s more in interest.

Read the full story:
'Barclaycard's cutting minimum repayments – you could be in debt YEARS longer paying DOUBLE the interest'

If you haven’t already, join the forum to reply.

Alexsas

I really don't understand the hysterical nature of this "news". That gives people the freedom to choose what to pay. It is an improvement for those who take advantage of balance transfer deals, so that you are not forced to make larger repayments sooner, having paid a fixed transfer fee.

I usually do like and appreciate MSE's advice, but this one is just way too patronising and assumes everyone is an idiot.

If there is something to light up the sky about is that people should not be taking credit they cannot afford.

Chomeur

Alexsas said:

I really don't understand the hysterical nature of this "news". That gives people the freedom to choose what to pay. It is an improvement for those who take advantage of balance transfer deals, so that you are not forced to make larger repayments sooner, having paid a fixed transfer fee.

I usually do like and appreciate MSE's advice, but this one is just way too patronising and assumes everyone is an idiot.

If there is something to light up the sky about is that people should not be taking credit they cannot afford.

It's a ridiculous article. I have some 0% balances on my Barclaycards and can only benefit from this change, as it means that I can borrow at 0% for longer. If you are paying interest on your Barclaycard, well, don't blame Barclaycard for not requiring you to pay it off so quickly as before - it's up to you.

HonestAl

So what happened to the the FCA's persistent debt regime.  All that did for me was to either make higher payments or lose the use of the credit card. That forced me in to higher debt as I needed to borrow at higher rates. As I thought at the time it was another pathetic FCA initiative and now it looks as if it's gone out of the window altogether. People in debt probably don't need pompous comments like 'they shouldn't get into debt if they can't afford it in the first place'

HonestAl

Chomeur said:

Alexsas said:

I really don't understand the hysterical nature of this "news". That gives people the freedom to choose what to pay. It is an improvement for those who take advantage of balance transfer deals, so that you are not forced to make larger repayments sooner, having paid a fixed transfer fee.

I usually do like and appreciate MSE's advice, but this one is just way too patronising and assumes everyone is an idiot.

If there is something to light up the sky about is that people should not be taking credit they cannot afford.

It's a ridiculous article. I have some 0% balances on my Barclaycards and can only benefit from this change, as it means that I can borrow at 0% for longer. If you are paying interest on your Barclaycard, well, don't blame Barclaycard for not requiring you to pay it off so quickly as before - it's up to you.

It's not a ridiculous article at all. Believe it or not there are people living on the breadline who will be only too grateful to reduce their payment. This article is warning them of the consequences.  

Hoenir

HonestAl said:

So what happened to the the FCA's persistent debt regime.

The other side of the coin will be smaller and reduced credit limits. Closure of unused facilities. Higher standard of underwriting criteria. Lending less could actually be more profitable. 

Vaux

As Barclaycard allows you to spend within the 0% BalTfr DD each month (like Tesco - but Tesco is easier to manage as it allows you to go over the DD whilst telling you how much to pay in addition to the DD to preserve the 0%) this change makes it easier to take full advantage of the 0% for longer. 

pecunianonolet

Chomeur said:

Alexsas said:

I really don't understand the hysterical nature of this "news". That gives people the freedom to choose what to pay. It is an improvement for those who take advantage of balance transfer deals, so that you are not forced to make larger repayments sooner, having paid a fixed transfer fee.

I usually do like and appreciate MSE's advice, but this one is just way too patronising and assumes everyone is an idiot.

If there is something to light up the sky about is that people should not be taking credit they cannot afford.

It's a ridiculous article. I have some 0% balances on my Barclaycards and can only benefit from this change, as it means that I can borrow at 0% for longer. If you are paying interest on your Barclaycard, well, don't blame Barclaycard for not requiring you to pay it off so quickly as before - it's up to you.

Welcome news and delighted about this. More of my stoozing money is earning for a prolonged time into my pocket  before I have to repay it.

rgk1953

This just brings Barclaycard in line with the majority of other card providers. Pity the higher minimum payment requirement wasn’t highlighted on MSE’s articles earlier, as many will have switched 0% balance deals from other cards when interest free period was ending to Barclaycard, suddenly to find their minimum payments had more than doubled making the new deal unaffordable?

Sea_Shell

HonestAl said:

Chomeur said:

Alexsas said:

I really don't understand the hysterical nature of this "news". That gives people the freedom to choose what to pay. It is an improvement for those who take advantage of balance transfer deals, so that you are not forced to make larger repayments sooner, having paid a fixed transfer fee.

I usually do like and appreciate MSE's advice, but this one is just way too patronising and assumes everyone is an idiot.

If there is something to light up the sky about is that people should not be taking credit they cannot afford.

It's a ridiculous article. I have some 0% balances on my Barclaycards and can only benefit from this change, as it means that I can borrow at 0% for longer. If you are paying interest on your Barclaycard, well, don't blame Barclaycard for not requiring you to pay it off so quickly as before - it's up to you.

It's not a ridiculous article at all. Believe it or not there are people living on the breadline who will be only too grateful to reduce their payment. This article is warning them of the consequences.  

That was my first thought when I received the email.

Give people the choice to pay off less each month, and if money's tight, they will.

They won't necessarily think about, or understand, the longer term interest implications and costs.

☹️


Martin Lewis agrees.  

ZeroSum

rgk1953 said:

This just brings Barclaycard in line with the majority of other card providers. Pity the higher minimum payment requirement wasn’t highlighted on MSE’s articles earlier, as many will have switched 0% balance deals from other cards when interest free period was ending to Barclaycard, suddenly to find their minimum payments had more than doubled making the new deal unaffordable?

I'm not sure it does bring in line with other banks. Its a fairly mixed bag in my experience. Halifax / lloyds group all have min payments of 2.5%. HSBC group is also 2.5% apart from FD which is 3%. And don't start me on Zopa who despite being in the 0% introductory period use the non introductory interest to calculate the min payment so it's just under 2.5% despite their T&Cs saying it should be 1%