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Bankers Encouraging Minimum Payments

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opened a letter this morning from a credit card company ( one of the big 4)

It says that in recent months theyve noticed that I pay close to the minimum payment.

they encourage people to pay more than this, as this reduces the cost, but appreciate this isnt always possible, so ...they are reducing the minimum payment to give "a little more breathing space"

Lucky for me this change is short term.

shocked, I looked at the account.

the last 6 months of payments were nowhere near the minimum, reducing the balance with an aim to 0 by December 2009.

Odd.

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not for minimum repayment card holders....this would put the cost up considerably.

the rate of minimum is now interest+.25% of the outstanding....way below my schedule of payments.

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not for minimum repayment card holders....this would put the cost up considerably.

the rate of minimum is now interest+.25% of the outstanding....way below my schedule of payments.

Looks like they're trying to tease you into increasing your debt.

I can't work out how long it would take to repay the capital at that rate of min. payment until I've had a few more coffees, but I think you'd probably be dead first, and so might your kids.

This seems to be similar to the Northern Rock 'together' product where defaults were automatically (and intentionally) masked in the early years by giving the punters enough additional cash to cover any inability to meet repayments.

Does the lender have any govt. assistance by chance?

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opened a letter this morning from a credit card company ( one of the big 4)

It says that in recent months theyve noticed that I pay close to the minimum payment.

they encourage people to pay more than this, as this reduces the cost, but appreciate this isnt always possible, so ...they are reducing the minimum payment to give "a little more breathing space"

Lucky for me this change is short term.

shocked, I looked at the account.

the last 6 months of payments were nowhere near the minimum, reducing the balance with an aim to 0 by December 2009.

Odd.

Please don't go, don't go, we're begging you stay, hey please don't go.

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I just took out a credit card purely because it's 0% interest on all purchases for 12 months. Haven't had one for years and I don't really need one but in my case it's more of a 'mouse roaring'. Why not keep my own money and spend theirs.

Minimum payment, becaue there is no interest, is 1% of the balance. :blink:

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This seems to be similar to the Northern Rock 'together' product where defaults were automatically (and intentionally) masked in the early years by giving the punters enough additional cash to cover any inability to meet repayments.

Friend of my wife just got a £3k 'refund' of bank charges

She has not accrued anything like that amount in bank charges; but it is the exact same amount as her overdraft.

Draw your own conclusions

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