New Day: Bye Bye Minimum Payment?

dazzaofdagenham · 13 June 2018 at 5:51PM

Samsung_Note2 wrote: »

Would that not be a standing order...minimum plus say 10%...sorted.

Very true...

eskbanker · 13 June 2018 at 5:59PM

Owain_Moneysaver wrote: »

The minimum payment should really be more than the APR % otherwise you'll never pay the thing off.

For any credit cards other than those still on pre-2011 Ts & Cs, the minimum payment already is more than the interest payment and must include repayment of at least 1% of the balance as well, as per https://www.moneysavingexpert.com/credit-cards/minimum-repayments-credit-card:

For all credit cards taken out since April 2011, minimum payment levels must be at least 1% of the balance plus that month's interest, any default charges and the annual fee (if there is one).

Shakin_Steve · 13 June 2018 at 7:43PM

camelot1971 wrote: »

From what I remember about the FCA guidance, if after a couple of years the balance on your card remains overall the same then lenders need to take action.

A credit card is not designed as a permanent line of credit that you don't ever pay off.

I think it's important to remember these rules are about protecting consumers from themselves or from lenders who are happy to lend at high interest rates indefinitely.

Most people pay their cards off or pay enough off that they don't spend £1000's in interest.

A credit card is exactly a line of credit that you never pay off. If I spend £500 in one month, and pay the full balance the next, then I can spend the £500 again.

Dandytf · 13 June 2018 at 7:58PM

I have 2 'new days' cards with medium balances.
Trying to pay at least min+£5 per month one time.
The larger of the two balances will take a redicules time to cleat.
Though I'm in effect snowballing a few cards-starting with smallest balance card.
I've read quite a few of these t+C's from various card providers lately, let's hope they don;t start enforcing exceptionally large min payments.
Though Tesco Card does well starting at £25 minimum payment.
With rates to rise any time, lots of card providers could follow in hiking their apr.

dazzaofdagenham · 13 June 2018 at 9:10PM

Dandytf wrote: »

I have 2 'new days' cards with medium balances.
Trying to pay at least min+£5 per month one time.
The larger of the two balances will take a redicules time to cleat.
Though I'm in effect snowballing a few cards-starting with smallest balance card.
I've read quite a few of these t+C's from various card providers lately, let's hope they don;t start enforcing exceptionally large min payments.
Though Tesco Card does well starting at £25 minimum payment.
With rates to rise any time, lots of card providers could follow in hiking their apr.

Would you describe a medium balance.

I to have 2 newday cards.....one from amazon...started with a 500 limit which went to 1400 and now they have upgraded me to a platinum card with a 5k limit...I’m quite shocked at this and may ask them to halve the limit as I could spend that away.
I have a standing order set up from bank to pay a 20 pounds a week and then I use fastervpayments to clear more than necessary.

I’m trying to control my credit as I got into debt several years ago and will not be making the same mistake again.

Thanks

Dandytf · 13 June 2018 at 9:25PM

Medium balance 1275 approx -limit 2.1k
This is by far the largest balance from all cards.
Though mid or late 2019 I'll increase payments considerably.
Allowing some time for interest rates starting to rise as I want to return to mortgage overpayments 1st.

jonesMUFCforever · 13 June 2018 at 9:36PM

Dandytf wrote: »

Medium balance 1275 approx -limit 2.1k
This is by far the largest balance from all cards.
Though mid or late 2019 I'll increase payments considerably.
Allowing some time for interest rates starting to rise as I want to return to mortgage overpayments 1st.

All well and good but which debt is charged the higher rate?
If it was me I would pay off the card first.

Dandytf · 13 June 2018 at 9:59PM

jonesMUFCforever wrote: »

All well and good but which debt is charged the higher rate?
If it was me I would pay off the card first.

Yeah I'm not following the highest rate card as such,
Though thankfuly the 1st chosen card is smallest balance at possibly highest rate -Cashplus 32% approx- cleared either June or July,
Then Tesco is next chosen balance@550 approx -27.5 this is my recent years lowest apr considerably though I'm happy a clearing that this year.

Dandytf · 13 June 2018 at 10:01PM

Next cards are in high 20's or low 30's apps
To be dea,t with during 2019-all 3 are currently min+5

[Deleted User] · 14 June 2018 at 11:48AM

chattychappy wrote: »

I can see the posts now:

I signed up for DD as recommended on this forum and by Martin. I started to get these messages about paying more than the minimum. No problem, I thought. I've done everything right: I signed a DD. But after a few years I checked a statement and found I still owe £xxx. (I don't normally bother with statements, I'm too busy.) So imagine my horror when I called them up to find that the reason for this is that they didn't take the extra. The woman on the phone was very rude to me. She kept shouting and swearing at me and I felt humiliated. She tried to tell me that I must pay this money. Why should I pay £xxx to greedy bankers when it was their fault I'm in this mess? My question is: Obviously I'm not paying the balance back. But how much compensation am I entitled to? :j:j:j:j

You're entitled to zero compensation

New Day: Bye Bye Minimum Payment?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free