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

ussdave

I called them and was informed mine won't be changed.  It also has a 0% balance transfer on it so it fits with the experiences above.  

A little frustrating but not a big deal for me personally.  Hopefully nobody else was relying on it.

goatfaced

I was pleased that mine would be going down to 1% so I could pay the difference towards something that expires sooner, to clear that one without changing my monthly total repayments (which are more than the minimum payments, so it makes sense to choose where to pay the additional).

Anyway, it doesn't appear to have reduced so I'll leave things as they are. Bah!

Hoenir

The Persistant Debt Rules remain in place. 18 months of minimum or low repayments will see them kick in. 

surreysaver

Hoenir said:

The Persistant Debt Rules remain in place. 18 months of minimum or low repayments will see them kick in. 

What persistent debt rules?

Nasqueron

surreysaver said:

Hoenir said:

The Persistant Debt Rules remain in place. 18 months of minimum or low repayments will see them kick in. 

What persistent debt rules?

Basically if you are in a constant state of paying only the minimum on interest bearing debt, for 18 months, where you have paid more in interest and charges than you have repaid, they have to contact you and suggest increasing payments. After 36 months (so 18 months after the letter) they have to contact you again and set out ways to repay the debt within a reasonable period (3-4 years) and give you free debt advice sources.

https://www.fca.org.uk/news/press-releases/fca-tells-credit-card-firms-review-their-approach-persistent-debt-customers

https://www.ukfinance.org.uk/our-expertise/cards/financial-conduct-authority-fca-rules-persistent-credit-card-debt-36-months-actions-frequently

surreysaver

Nasqueron said:

surreysaver said:

Hoenir said:

The Persistant Debt Rules remain in place. 18 months of minimum or low repayments will see them kick in. 

What persistent debt rules?

Basically if you are in a constant state of paying only the minimum on interest bearing debt, for 18 months, where you have paid more in interest and charges than you have repaid, they have to contact you and suggest increasing payments. After 36 months (so 18 months after the letter) they have to contact you again and set out ways to repay the debt within a reasonable period (3-4 years) and give you free debt advice sources.

https://www.fca.org.uk/news/press-releases/fca-tells-credit-card-firms-review-their-approach-persistent-debt-customers

https://www.ukfinance.org.uk/our-expertise/cards/financial-conduct-authority-fca-rules-persistent-credit-card-debt-36-months-actions-frequently

Fair enough. I was getting worried about them wanting me to pay more off of my 0% debt. I've got over £10k on my Barclaycard, and my minimum payment has gone down from 2.75% to 1%, so I presume that's because its all at 0%?

Nasqueron

surreysaver said:

Nasqueron said:

surreysaver said:

Hoenir said:

The Persistant Debt Rules remain in place. 18 months of minimum or low repayments will see them kick in. 

What persistent debt rules?

Basically if you are in a constant state of paying only the minimum on interest bearing debt, for 18 months, where you have paid more in interest and charges than you have repaid, they have to contact you and suggest increasing payments. After 36 months (so 18 months after the letter) they have to contact you again and set out ways to repay the debt within a reasonable period (3-4 years) and give you free debt advice sources.

https://www.fca.org.uk/news/press-releases/fca-tells-credit-card-firms-review-their-approach-persistent-debt-customers

https://www.ukfinance.org.uk/our-expertise/cards/financial-conduct-authority-fca-rules-persistent-credit-card-debt-36-months-actions-frequently

Fair enough. I was getting worried about them wanting me to pay more off of my 0% debt. I've got over £10k on my Barclaycard, and my minimum payment has gone down from 2.75% to 1%, so I presume that's because its all at 0%?

I think Barclays changed them depending on individual circumstances. It won't matter with 0% though, they are on promo rates and as you are not paying interest, persistent debt isn't applicable

surreysaver

Nasqueron said:

surreysaver said:

Nasqueron said:

surreysaver said:

Hoenir said:

The Persistant Debt Rules remain in place. 18 months of minimum or low repayments will see them kick in. 

What persistent debt rules?

Basically if you are in a constant state of paying only the minimum on interest bearing debt, for 18 months, where you have paid more in interest and charges than you have repaid, they have to contact you and suggest increasing payments. After 36 months (so 18 months after the letter) they have to contact you again and set out ways to repay the debt within a reasonable period (3-4 years) and give you free debt advice sources.

https://www.fca.org.uk/news/press-releases/fca-tells-credit-card-firms-review-their-approach-persistent-debt-customers

https://www.ukfinance.org.uk/our-expertise/cards/financial-conduct-authority-fca-rules-persistent-credit-card-debt-36-months-actions-frequently

Fair enough. I was getting worried about them wanting me to pay more off of my 0% debt. I've got over £10k on my Barclaycard, and my minimum payment has gone down from 2.75% to 1%, so I presume that's because its all at 0%?

I think Barclays changed them depending on individual circumstances. It won't matter with 0% though, they are on promo rates and as you are not paying interest, persistent debt isn't applicable

Although I do keep my 0% topped up with spending every month within my minimum payment amount, as Barclaycard allow you to do that, and I also earn cashback on that spending too

goatfaced

My minimum payment has now changed to 1%. I only have a 0% offer on it. I don't think I have ever paid them interest, i just use the 0% offers. I'm assuming they made the change after my previous bill. I'm happy with 1% as it gives me more freedom to choose where to allocate my extra payments. 

kahkisparky

Yeah i agree, i want the fexibility