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    • JimmyTheWig
    • By JimmyTheWig 18th Mar 10, 12:09 PM
    • 11,897 Posts
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    JimmyTheWig
    • #2
    • 18th Mar 10, 12:09 PM
    • #2
    • 18th Mar 10, 12:09 PM
    I think that it should be noted in bold towards the top of the article that this is something for the future and, until told otherwise you should "never, ever, ever, ever, ...".

    I wonder how many people will have heard on the news that this is changing and think that it applies now? [I'm not one of them, incidentally, but I still think there will be quite a few.]
    • JimmyTheWig
    • By JimmyTheWig 18th Mar 10, 12:11 PM
    • 11,897 Posts
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    JimmyTheWig
    • #3
    • 18th Mar 10, 12:11 PM
    • #3
    • 18th Mar 10, 12:11 PM
    Another possible stumbling block is residual interest. As you are not clearing the BT card then the "zero interest for paying off your balance in full two months in a row" rule will not kick in?

    In fact, might this actually waive your right to the 56 days interest free period on purchases?
    • Richard019
    • By Richard019 18th Mar 10, 12:15 PM
    • 448 Posts
    • 154 Thanks
    Richard019
    • #4
    • 18th Mar 10, 12:15 PM
    • #4
    • 18th Mar 10, 12:15 PM
    I can't quite put my finger on what they are, but I'm sure there'll be some issue with having your direct debit for minimum amounts in place on the BT card and then making additional payments for your spending. I know some adjust their DD request if you make extra payments, and MBNA for one have really low minimum payments set up but I'm not sure how it impacts on the saving they'd be making over having seperate cards.

    Where people have set it up to pay a set amount each month there's a need to make sure that it covers the new minimum payment. Using the example in the article of 2k BT and 2k spending. If the minimum payment was 100 and they'd set the regular payment to be 200 they might think it covers it. With the interest on the purchase it won't, they'll get a penalty and lose their promotional rate.
    • Richard019
    • By Richard019 18th Mar 10, 12:29 PM
    • 448 Posts
    • 154 Thanks
    Richard019
    • #5
    • 18th Mar 10, 12:29 PM
    • #5
    • 18th Mar 10, 12:29 PM
    Another possible stumbling block is residual interest. As you are not clearing the BT card then the "zero interest for paying off your balance in full two months in a row" rule will not kick in?

    In fact, might this actually waive your right to the 56 days interest free period on purchases?
    Originally posted by JimmyTheWig
    I don't think it would in this case, I read it as only being for purchases being made for payment over a longer period anyway. If you did it on a seperate card you'd still not be paying it off in full so you'd still be being hit by residual interest.
    • JimmyTheWig
    • By JimmyTheWig 18th Mar 10, 12:44 PM
    • 11,897 Posts
    • 11,427 Thanks
    JimmyTheWig
    • #6
    • 18th Mar 10, 12:44 PM
    • #6
    • 18th Mar 10, 12:44 PM
    I don't think it would in this case, I read it as only being for purchases being made for payment over a longer period anyway. If you did it on a seperate card you'd still not be paying it off in full so you'd still be being hit by residual interest.
    Originally posted by Richard019
    But you're still going to pay it off one day...
    • MSE Martin
    • By MSE Martin 18th Mar 10, 2:04 PM
    • 8,116 Posts
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    MSE Martin
    • #7
    • 18th Mar 10, 2:04 PM
    • #7
    • 18th Mar 10, 2:04 PM
    I think that it should be noted in bold towards the top of the article that this is something for the future and, until told otherwise you should "never, ever, ever, ever, ...".

    I wonder how many people will have heard on the news that this is changing and think that it applies now? [I'm not one of them, incidentally, but I still think there will be quite a few.]
    Originally posted by JimmyTheWig

    I thought I'd made it obvious -but will go and make it a bit more so - ta for the comment
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

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  • Jo Bloggs_37
    • #8
    • 18th Mar 10, 2:14 PM
    I need some help with my credit card
    • #8
    • 18th Mar 10, 2:14 PM
    I have taken out the new Zero Santander Credit Card. I applied for this card as I am at my overdraft limit and needed cash to go to visit my son in the U.S.A (that is another story, I will never fly B.A again!) when I tried to use my new credit card, the A.T.M would not give me any money, I telephoned the customer care number and was told that I had transferred two amounts totalling 2010.00 from my card. I told them that I had not done this and they said it must be their error. I was very concerned but was satisfied that they were going to sort this out. I have now arrived home a week early from the U.S due to B.A strike action and have received a card statement asking for me to make payment and showing the 2,010.00. Do I have to pay this?? should I contact the police as this is theft? Can somebody help me please? I am so worried, I have spoken to them but they say they can't help me.......
  • hayleythedaisy
    • #9
    • 18th Mar 10, 4:05 PM
    • #9
    • 18th Mar 10, 4:05 PM
    Hurrah for the changes!!! Although they will have their downfalls, anything that helps niave people who don't understand that they can't put it all onto one card is good!!! Fed up of companies doing sneaky things to get more money out of us!!!
    Bump due 22nd September
  • irrelevant
    I think I've got it - if, say, I have a card with a hefty but 0% BT on it, and need to spend a sum which will take several months to pay off, using minimum payments on both it will be better to put it all on one card

    e.g. with two cards:
    card 1, 1000 0% min payment 50
    card 2, 1000 18% min payment 50

    So I'm only paying 50 a month off the expensive debt, and probably getting interest of almost that much added back on.

    but with one card
    1000 at 0%, 1000 at 18% min payment 100.
    The full 100 will comes off the balance that's getting interest charged on it, so that part will be paid off faster, and will therefore charge me much less interest.

    Gotcha!
    • jagu
    • By jagu 18th Mar 10, 8:02 PM
    • 25 Posts
    • 24 Thanks
    jagu
    A Disaster in the Making?
    I'm not so sure this is a good thing. Zero percent balance transfers exist because the card companies know most people won't avoid spending on their card once they've transferred the balance. Or enough people to subsidise the operation, at least.

    I suspect zero percent balance transfers will now disappear and those of us clever enough to read MSE and keep these cards in a drawer while we clear the balance will no longer have the option.
    • Richard019
    • By Richard019 18th Mar 10, 9:48 PM
    • 448 Posts
    • 154 Thanks
    Richard019
    I'm not so sure this is a good thing. Zero percent balance transfers exist because the card companies know most people won't avoid spending on their card once they've transferred the balance. Or enough people to subsidise the operation, at least.

    I suspect zero percent balance transfers will now disappear and those of us clever enough to read MSE and keep these cards in a drawer while we clear the balance will no longer have the option.
    Originally posted by jagu
    I think it's more that they hope we can't pay off the BT at the end of the 0% period and they then make the profit from the interest instead of their competitors.
    • Richard019
    • By Richard019 18th Mar 10, 9:51 PM
    • 448 Posts
    • 154 Thanks
    Richard019
    But you're still going to pay it off one day...
    Originally posted by JimmyTheWig
    At some point you're going to be paying off the BT as well so you will then clear the card 2 months running. I don't see there being much of a difference between the BT ending and the time someone is going to take to pay off a large purchase, at least not with the BT offer ending first. Of course LOB promotions are a different matter entirely.
    Last edited by Richard019; 18-03-2010 at 9:55 PM.
    • MSE Martin
    • By MSE Martin 18th Mar 10, 11:26 PM
    • 8,116 Posts
    • 42,310 Thanks
    MSE Martin
    I think I've got it - if, say, I have a card with a hefty but 0% BT on it, and need to spend a sum which will take several months to pay off, using minimum payments on both it will be better to put it all on one card

    e.g. with two cards:
    card 1, 1000 0% min payment 50
    card 2, 1000 18% min payment 50

    So I'm only paying 50 a month off the expensive debt, and probably getting interest of almost that much added back on.

    but with one card
    1000 at 0%, 1000 at 18% min payment 100.
    The full 100 will comes off the balance that's getting interest charged on it, so that part will be paid off faster, and will therefore charge me much less interest.

    Gotcha!
    Originally posted by irrelevant

    yep that was what i was getting at
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
    • MSE Martin
    • By MSE Martin 18th Mar 10, 11:27 PM
    • 8,116 Posts
    • 42,310 Thanks
    MSE Martin
    Hi

    As for disappearance of balance transfers - i think we will see an impact but not a huge one. The go to rate is the big profit angle here - repayment hierarchy was a nice little earner on top.
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.

    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.

    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
    • Paulgonnabedebtfree
    • By Paulgonnabedebtfree 19th Mar 10, 8:55 AM
    • 2,703 Posts
    • 28,940 Thanks
    Paulgonnabedebtfree
    Hi

    As for disappearance of balance transfers - i think we will see an impact but not a huge one. The go to rate is the big profit angle here - repayment hierarchy was a nice little earner on top.
    Originally posted by MSE Martin
    I suspect this will lead to some more rate jacking Martin. Although the right to refuse now exists, not everyone is in a position to do so and to lose the credit facility. Although I've never been caught out myself with the payment hierachies, it's easy to see how it could happen.
  • RabbitMad
    I don't think the following sentence is very fair

    " a nasty piece of commercial genius has allowed plastic providers to unfairly delve into their customers pockets for years"

    Its seems very fair to me. I would think that its up to the lender how they allow people to borrow.

    I do wonder what the unintended consequences of this will be - it could be less balance transfers, it could be higher rates but it will be something. As we've seem with unauthorised overdraft charges, the banks (halifax in particular) have introduced much steeper charges but made them look a lot smaller and fairer.
    • JimmyTheWig
    • By JimmyTheWig 19th Mar 10, 10:14 AM
    • 11,897 Posts
    • 11,427 Thanks
    JimmyTheWig
    I'm not so sure this is a good thing. Zero percent balance transfers exist because the card companies know most people won't avoid spending on their card once they've transferred the balance. Or enough people to subsidise the operation, at least.

    I suspect zero percent balance transfers will now disappear and those of us clever enough to read MSE and keep these cards in a drawer while we clear the balance will no longer have the option.
    Originally posted by jagu
    Same old story, though, isn't it.
    Unfair bank charges, unfair airline charges, now unfair repayment charges. There's always someone who is able to play the system not wanting it to become fair for everybody as they want to carry on benefitting from the unfairness.
    Well, to me that's just unfair!

    Edit: Cross-posted with RabbitMad, saying the same thing from the opposite angle!
    Last edited by JimmyTheWig; 19-03-2010 at 10:19 AM.
  • RosieJ
    This change to the credit card hierarchy is good news, but I got duped by being persuaded to buy identity insurance. They don't tell you in any of the terms and conditions that the monthly payments will come off your credit card and you will therefore be charged interest on the insurance you have taken out.OK it was 79 per year and it will have cost another ~12 by July which is the earliest date I can cancel the insurance. I'm still miffed at falling into the trap.
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