Virgin increase interest rate!

YorkshireBoy

speedbird1973 wrote: »

The min payment has changed to interest + £5.

...but it's always been 3% (or 2.25% whatever) or interest + £5, whichever is the LESSER, hasn't it?

For anyone to have to pay 5% they'd need to be on a rate of circa 60% APR wouldn't they?

That said at 34.9% I'd recommend paying 5%!

I agree.

mcrfan

speedbird1973 wrote: »

There isn't a min repayment hike.

The min payment has changed to interest + £5. Which may be a little higher than your old 2% payment.. However the capital payment will be much reduced (a fiver) and the interest much increased, The actual payment wont be that different/

The letter amending the T&C is incredibly unclear, and it looks like 5% is the min repayment.

That said at 34.9% I'd recommend paying 5%!

Yes I thought it meant it was going up to 5%. Just re-reading the letter now and I see what you mean. So it's interest plus £5 or 5% - whichever is the lesser amount, so people with smaller balances will pay 5%??? But I will be paying £5 plus interest.
It's so confusing why don't they explain it properly!!

Although think my payment will go up, trying to work out what the interest will be. 2.52% on a 4.5k balance??? Anyone? My brain hurts....

YorkshireBoy

mcrfan wrote: »

...so people with smaller balances will pay 5%???

No, because they won't have as much interest charged...see post #10 above.

Most people will never have to pay 5% unless they have PPI and an even higher interest rate and loads of charges.

...trying to work out what the interest will be. 2.52% on a 4.5k balance???

£4,500 x 0.0252 = £113.40

Add on the £5, and your monthly payment will be £118.40

mcrfan

Add on the £5, and your monthly payment will be £118.40[/quote]


Thanks! Glad someone did well at Maths!!

But damn that's my budget out of the window! I had the usual £70 budgeted...

:mad:

YorkshireBoy

mcrfan wrote: »

Glad someone did well at Maths!!

I didn't actually...I got a 'U' at GCSE!

I've done OK since though.

mcrfan

Yeah strange how much you learn from money - spending it and credit cards etc. they really should teach you about this stuff at school.
I got a credit card at 19 did not have a clue how they worked, just started spending away! Fast forward 4 years here I am today in the poo!

speedbird1973

Both by "MBNA" not virgin cards have always been 2% min repayment, although they are both over 10 years old.