Confused, help? Cred card payments

[confusedladyx]

Hi all,

Wondering if anyone can help. I have a credit card which is 39.9%.

As you can see what I have available, what I owe & my credit limit. I'm confused because each month I make a payment of around £100. My minimum payment doesn't seem to be dropping but getting higher? Last month my min payment was around £75 now this month it is £85, is this right? I am looking at this wrong?

With the figures you can see below and knowing my card is 39.9% is £85 correct for my min payment?

(Also does my cred limit affect this? They have increased my limit to £3500 which will be affective from 19th of Jan, is this again going to make my min payments higher or is that only the case if I spend on it?)

Thanks in advance for any help.

Pic attached

What card is it? Some specify a minimum payment as a percentage of the balance. Are you making further purchases on the card?

It is a Vanquis gold Visa card & since my last min payment I've spend around a further £20 on the card

Interest rates went up in November, has your credit card rate changed this month / last month because of this?

Assuming you are not spending on the card, the balance will go down if you pay more than the minimum repayment. But if interest rates go up, then you are paying more interest on your balance so the minimum repayment will be higher and it will take longer to clear the balance.

Interest rates are likely to go up again this year. Can you transfer the balance to a lower interest card so you pay it off sooner? 39% Apr is really high and at £100 a month it'll take 2 years to clear.

Your minimum payment is based on what you owe, not your credit limit.

Not sure why your MP is going up, could be because your interest rate is extortionate.

I’d definately looking at money saving expert and use one of his calculators to find a card you might get accepted for and transfer the balance.

I didn’t think I’d be accepted as credit rating not great but I managed last summer to get a 0% deal for 15months with tesco credit card.

if you transfer the balance and then pay as much as you can afford each month, you will see the balance rapidly dropping as you won’t be going three steps forward and two steps back like you are at the moment with the very high interest being added each month. The best thing to do is work out how much you can afford to pay off it each month and set a standing order up for that amount so that you consistently pay the same amount each month rather than a direct debit where they will reduce the amount each month, effectively making you pay it over a longer time period and paying them npmore interest.

Try not to add any more to this card. By the time you come to pay off that £20 you added, it will cost you around £16 in Interest!

Why on earth are you using a card with such a high rate?!?

If you only pay the minimum you will never clear the debt,!!! Don't spend any more on the card. If you were to pay off the debt at £85 per month it will take you 2 years and 3 months. And will most you over 650 in interest.

You continue to accrue interest if you only make a minimum payment as the balance carries over. So you may pay £100 but it will not reduce the amount owed by £100.

As already mentioned, you need to pay more than the minimum. A good trick is pay by Standing Order, set at this month’s minimum amount. Also any extra you can, pay some off the card. And stop using it.

And with that rate of interest I would get it paid ASAP and cancel the card.

Yeah, your minimum payment isn't paying off the card. Your minimum payment is the lowest amount they will permit you to pay and keep your debt active (ie not in default).

But if your debt is high, and your interest rate is high, then the interest on your debt will increase the balance by more than your minimum payment will lower it.

If you want to bring it down, you need to pay more than that.

If you can't get a new cc with lower interest try upping g the payment above the minimum on standing order... don't use it again it's nightmare interest.
There's a thread on credit crunch thread that explains the standing order.
Talkinpeace, is a financial wizz on there😇😇

Hi I had the same problem with the same card. And most of that minimum pay emery was going to interest. I managed to balance transfer onto a 30 months interest free balance transfer card and now all the money goes to paying off the actual dept not just interest. Could you try the same?

Your minimum payment is all of the interest due, any fees incurred, plus a percentage of the actual balance. Interest is calculated daily and will be higher in months with more days. If you have incurred any charges this will also increase your minimum payment.
Recently there have been changes with regard to minimum payments and they must now cover at least 1% of your balance, plus the interest and fees. This may have an impact.