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Barclaycard - Minimum payment reduction.
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steveksullivan
Posts: 554 Forumite
in Credit cards
On applying for a new balance transfer B/card the minimum monthly repayment is currently quoted at 3.75%. I know there is a planned reduction to 1% due to take effect from 22nd July and that existing cardholders received emails in April(?) notifying them of the reduction.
I phoned their C/Services this morning to confirm the reduction would be 'across the board' but she would not confirm it and said that their internal website said it would apply to 'some customers' and it wasn't clear to her whether that included NEW customers.
Has anybody got any better information? Preferably someone who has very recently taken out a B/Card and also received the email?
Thanks as always for any replies.
I phoned their C/Services this morning to confirm the reduction would be 'across the board' but she would not confirm it and said that their internal website said it would apply to 'some customers' and it wasn't clear to her whether that included NEW customers.
Has anybody got any better information? Preferably someone who has very recently taken out a B/Card and also received the email?
Thanks as always for any replies.
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Comments
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Barclaycard allow you to set your own payment amount for the DD if that helps, paying minimum even if you are on 0% is a gamble though. Sorry I can't help about the minimum payment1
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I had the email as a existing BC holder. I would expect it to apply across the board and to new customers. The 'some' is probably a catch all for those on plans etc. be aware it is a double edge sword to catch you out and not benefit you. In reality a minimum 10% per month payment would be better for consumers in the long run1
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th081 said:be aware it is a double edge sword to catch you out and not benefit you. In reality a minimum 10% per month payment would be better for consumers in the long runTo play devil's advocate, it depends on what interest rate you're being charged.For a standard interest-charging card then undoubtedly a higher minimum payment benefits the consumer in the long run - they'll pay less interest overall and be in debt for a shorter period of time.But if you're on a 0% deal and you have savings put aside to repay in full when the promotional deal ends, then a smaller minimum payment is advantageous - you can earn interest on more of your money until the time comes that you need to repay the card.
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CliveOfIndia said:th081 said:be aware it is a double edge sword to catch you out and not benefit you. In reality a minimum 10% per month payment would be better for consumers in the long runTo play devil's advocate, it depends on what interest rate you're being charged.For a standard interest-charging card then undoubtedly a higher minimum payment benefits the consumer in the long run - they'll pay less interest overall and be in debt for a shorter period of time.But if you're on a 0% deal and you have savings put aside to repay in full when the promotional deal ends, then a smaller minimum payment is advantageous - you can earn interest on more of your money until the time comes that you need to repay the card.2
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@th081 I consider myself very lucky but I do fall into that category - hence my original post as I want to minimise my monthly outgoings during the 0% period.
Last call .... anybody taken out the card more recently and had the 'reduction' email?
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It applies to ALL customers from 22nd July 2024, that is The highest of:- 1% of your balanceOR- 1% of your balance plus interestOR- £51
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is the 1% actually going to apply to all BC cards? i have 5 cards, 3 have had the 1% email the other 2 not.0
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Still trying to find a definitive answer from someone who has taken out a card recently AND had the email as Barclaycard themselves do not know .....0
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steveksullivan said:Still trying to find a definitive answer from someone who has taken out a card recently AND had the email as Barclaycard themselves do not know .....
But if you are going to balance transfer and have selected the card you either have an amount saved to offset against your debt with a small payment or a smaller payment. So you will have minimised your payments, reduced to the smallest possible a mount, whichever way the min payment rate will go.0
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