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What does 'Fixed at First Minimum Payment' mean please *talkinginpeace*?

(6 Posts)
MoveAlongNow Tue 03-Jun-14 20:06:51

Hello all,

I am de-lurking for the first time ever to ask what may be a very stupid question blush. I have used the very impressive looking credit card debt repayment spreadsheet that TIP so kindly created. It looks as if I can pay my horrendous debt off much quicker if I fix at first min payment but what does that mean?? I was intending to just chuck as much money as I can at the bill but should I be going about it a different way? I should be more clued up by now ffs, am 34... thanks in advance

BobTheFly Tue 03-Jun-14 20:08:34

As the balance goes down, the minimum required payment will go down. But you can clear it quicker if you keep paying what you've always paid. Does that make sense?

ilovepowerhoop Tue 03-Jun-14 20:10:02

does it mean that as the balance owing decreases you stick to the higher amount you paid at the start rather than decreasing your repayment as the balance owing decreases?

ilovepowerhoop Tue 03-Jun-14 20:11:44

e.g. if the first payment you make is £100 then you stick at that amount rather than decreasing your payment as the balance decreases.

MoveAlongNow Tue 03-Jun-14 20:19:37

wow such quick replies, am chuffed! Thanks! yeah that makes sense now, that was my plan all along. I've set up a SO for 150, but am going to top up as and when I can. I think I might even be able to manage 200 most months, but don't want to commit too much until some work issues fall into place like do I still have a job come September Big relief, I think I'm on the right track after all. Thanks for the inspiration, I have been lurking for awhile. Nice to know others have been there too smile

TalkinPeace Tue 03-Jun-14 21:46:57

Hiya Movealong

If the amount they took from you wast month was (say) £102.01
next month they will take about £100 and then £98 and so on
if you keep paying £102 then you are paying a little bit extra off the capital every month - but that rises REALLY fast towards clearing the debt.

Credit card companies hate me grin
I hate them more wink

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