JAJA Minimum payment

steveh68

Hi,

Foolishly assumed my minimum payment was the interest plus a percentage of the balance which iis how previous cards had worked. I have been paying the card off but recently my balance has climbed so now having to pay the minimum for next few months. My interest rate is 40% so am trying to clear card and cancel ASAP. My problem is next month is my first minimum payment and estimated interest is £348 so my minimum payment is twice interest so £696 and I had budgeted £433. So no way can I afford that or tell my wife! So I can offer £433 per month with £1000 payment in addition in September, January and April. What do you think my chances are of JAJA accepting this? Anyone any experience? I will call them tomorrow as that is first chance I have after realising the situation today? Any advise greatfully received. I am worried sick

retiredbanker1

Can you not get a balance transfer card at all?

If not I don't think they will accept your proposal - if you cannot manage minimum payments then they will default you.

Get rid of this card ASAP!

molerat

Agree with above. Your only "non harmful" option would be to try and BT it elsewhere, trying to negotiate your way out of your contractual payments is likely to leave you with at least an AP marker on your credit file.

MrSilk

£348 monthly interest assumes you have a balance of around £10,470. Is this your only credit card debt? As above have said, if you can do a full or even partial balance transfer it would dramatically decrease the interest.

Of course, it all goes on income and affordability. Failing a balance transfer, you could try for a debt consolidation loan?

steveh68

Thank you for all the comments. I have made a £3000 payment to reduce the card and can overpay £1000 in October and £1500 in January and £1000 in April this will see the balance and payments plummet to a more manageable level and then I can shift balance and ditch the card. Thank you for all your helpful comments.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82102074#Comment_82102074

Hopefully you'll have done the maths and made sure that significant overpayments in some months doesn't leave you at risk of not being able to afford the minimum payments in others? One of the key things in repaying debts is to be able to meet the contractual minimum repayment every month without fail, i.e. overpaying by £3K just now would be counterproductive if doing so meant that you weren't able to meet next month's minimum…