Credit cards - Minimum payment

[John Rambo]

I have contacted my credit card provider with a view to reducing the minimum monthly repayment. They basically told me there was nothing they could do. I was advised that the minimum payment was non negotiable. I was also advised that if I paid anything less than the monthly minimum payment for a period of four months, the debt would be referred to the ICB and my credit rating would be ruined forever. I was told that whether I made no monthly payment, half the minimum monthly payment or €20 less than the minimum monthly payment, the net effect would be the same. I was advised to pay what I could and wait for it to be referred to the ICB. Does that make sense to anyone? Why treat people who want to repay a debt the same as someone who couldn't be bothered doing so? If anyone has any suggestions or experiences they could relay I'd be grateful. Thanks.

 

[jhegarty]

It's for 5 years, not forever.

But everything else looks correct.

 

[John Rambo]

Fair enough. Thanks.

 

[jhegarty]

How far within your credit limit are you ?

 

[Bronte]

Is the minimum monthly repayment not a condition of your agreement with the card issuer when you received the card? In other words you've signed a contact and this is a specific condition that you must fulfill. You are trying to change a term and condition and they don't agree.

Nothing to do with you John Rambo but I think it's a good thing there are minimum payments and personally I think these are set too low as they lead to people getting into permanent debt which is what the card issuers wanted up to now anyway.

 

[Danniboo7]

John Rambo - The minimum payment is a set amount you must pay every month(5% of your balance as far as i'm aware). It is part of the Terms and Conditions you agreed to when signing your contract. Similarly when taking out a loan you can't just decide what you are going to pay. If you are struggling with your Credit Card why not look at taking out a personal loan clear the card and cut it up.

 

[senni]

ring them up and ask them to accept 3%...A few companies have accepted this figure for 6 months, with the option of a review later. Confirm in writing to them.

Good luck