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Barclaycard Bill Could Take 98 Years To Clear

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Barclaycard bill could take 98 years to clear

Britain's biggest credit card is cutting the minimum monthly payments required by struggling customers - however, the move could mean it takes 98 years to clear a £5,000 debt.

Barclaycard said it plans to 'help' customers by reducing the minimum repayment required each month from 2.25% of the balance to 1.5%, with a minimum of £5.

On the face of it, this will allow them to cut their credit card payments to free up cash to pay other vital bills. But the outcome could mean that people pay thousands of pounds in extra interest while they will remain in debt for decades longer.

Research by consumer website MoneySavingExpert.com has identified alarming consequences for someone carrying a £5,000 debt with a 15.9% annual percentage rate (APR) on a Barclaycard.

Its figures show that making the current minimum repayments would take 31 years to clear the debt and generate interest charges of £5,900.

Under the new deal the original £5,000 debt would take 98 years to clear and generate interest charges of £22,300. This equates to an extra 67 years and a massive £16,400 extra interest.

Barclaycard said: 'This is an option we are giving selected customers. We have been very clear about the dangers of only ever making the minimum repayment.

Life expediency...err..expectancy in United Kingdom is around 75/M 80/F (not in Scotland of course)

How are we supposed to believe that Barclays has a sound financial model?

No wonder we are in the poop.

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Barclaycard bill could take 98 years to clear

Life expediency...err..expectancy in United Kingdom is around 75/M 80/F (not in Scotland of course)

How are we supposed to believe that Barclays has a sound financial model?

No wonder we are in the poop.

they aren't bothered about the capitol being repaid, this is a plan to look helpful yet screw those in need for years of interest.

It may take 98 years to pay off the initial 5k making the minimum payment but how many tens of thousands will have been paid in total over 98 years or even 50?

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they aren't bothered about the capitol being repaid, this is a plan to look helpful yet screw those in need for years of interest.

It may take 98 years to pay off the initial 5k making the minimum payment but how many tens of thousands will have been paid in total over 98 years or even 50?

+1

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they aren't bothered about the capitol being repaid, this is a plan to look helpful yet screw those in need for years of interest.

It may take 98 years to pay off the initial 5k making the minimum payment but how many tens of thousands will have been paid in total over 98 years or even 50?

27.3 apparently.

Its not necessarily a bad thing, kind of assumes that things may improve for the person in debt.

That said, i'm not sure it makes a huge amount of difference.

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Barclaycard bill could take 98 years to clear

...

"Under the new deal the original £5,000 debt would take 98 years to clear and generate interest charges of £22,300. This equates to an extra 67 years and a massive £16,400 extra interest."

...

Yeah, like most people with credit card difficulties would clear the debt anyway. Like hell they would -- they'd just keep rolling it over with new spending.

Anybody in a financial and mental position to repay the debt, will still repay the debt. The less prudent are being given a hook with a bit more wiggle room, and Barclaycard presumably gets fewer defaults.

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Well, I find it to be very unethical for a lender to base their business model upon the perpetuation of debt interest through wholesale lending to those incapable of simply repaying the principle.

I agree to some extent*, but that's the nature of the credit card business.

* while also bearing in mind that those choosing to borrow would claim to be adults, and would certainly object to any attempt to curtail their right to enter into credit agreements.

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I agree to some extent*, but that's the nature of the credit card business.

* while also bearing in mind that those choosing to borrow would claim to be adults, and would certainly object to any attempt to curtail their right to enter into credit agreements.

But this is Britain.

Every major religion has covenants about usury.

This is all we can do.

Fvck everyone.

It's sick.

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Barclaycard bill could take 98 years to clear

Life expediency...err..expectancy in United Kingdom is around 75/M 80/F (not in Scotland of course)

How are we supposed to believe that Barclays has a sound financial model?

No wonder we are in the poop.

Of course. In Scotland it's 74.9 and 79.9. That extra 36 1/2 days makes a big difference.

http://www.scotland.gov.uk/Topics/Statisti...dLifeExpectancy

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But this is Britain.

Every major religion has covenants about usury.

This is all we can do.

Our whole economic system is based on usury.

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This is very common. A minority of lenders go for judgment and get a charging order rather than agree to a debt repayment plan, and in most cases interest on the judgments accrues at a piffling 6-8%.

So the point about interest racking up is valid, with some debt repayment plans doubling the liability every three years.

The other point is that every payment resets the limitation period for suing - so judgment will be obtained at some stage.

In my view better to take it on the chin now.

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This could be for the bank's benefit to allow them to not have to let credit card debtors who can't even make the current minimum payments hit the balance sheet as impairments.

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This is very common. A minority of lenders go for judgment and get a charging order rather than agree to a debt repayment plan, and in most cases interest on the judgments accrues at a piffling 6-8%.

So the point about interest racking up is valid, with some debt repayment plans doubling the liability every three years.

The other point is that every payment resets the limitation period for suing - so judgment will be obtained at some stage.

In my view better to take it on the chin now.

Yes, but can it be assumed that the lender will definitely issue a claim against accounts badly in arrears.

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People who take forever to repay their credit cards become an asset, owned by the bank...a modern day slave..

Its sad - that politics and banking have fallen so low as to re-enact slavery through debt, but it is the case. And before anyone tells you that you have a choice of being in debt, the reality is that no one has a choice when essential assets like housing and soon energy and food are bid up due to out of control credit and printing.

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And what are our wonderful property flipping MP's doing about this? Reforming the Consumer Credit Act to give struggling card holders a chance? Giving the courts power to re open credit bargains. Not one bit of it. One day we might get a government for the people, not against the people, and in cahoots with corrupt bankers.

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Yeah, like most people with credit card difficulties would clear the debt anyway. Like hell they would -- they'd just keep rolling it over with new spending.

Anybody in a financial and mental position to repay the debt, will still repay the debt. The less prudent are being given a hook with a bit more wiggle room, and Barclaycard presumably gets fewer defaults.

Bingo!

They'd rather get 1.5% per month for 98 years than lose 100% now via a bankruptcy write off.

People need to wise up and default en masse NOW.

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