Results for: Barclaycard

Martin Lewis, a renowned money expert, has warned Barclaycard customers that they could face significantly longer debt repayment periods due to a reduction in minimum monthly payments. From July 22, Barclaycard will implement a new payment scheme, potentially impacting 80% of its customers. This move has sparked concerns that individuals who only make minimum payments could prolong their debt, leading to increased interest charges. Lewis urges customers to be vigilant and consider making fixed monthly payments based on their affordability, even if it exceeds the new minimums. Barclaycard, on the other hand, maintains that the changes aim to provide greater flexibility and support for customers with persistent debt.

Barclaycard, the UK’s largest bank, is making a potentially risky change to minimum debt repayments, setting them at just £5 for all customers. Financial expert Martin Lewis warns that this seemingly harmless move could significantly increase the total cost of debt for customers struggling to repay their balances. By paying only the minimum, borrowers may end up extending their debt repayment period by a decade, accumulating thousands of pounds in additional interest charges.

Barclaycard customers who only make minimum payments could face significantly longer debts and higher interest costs following a change in the minimum repayment requirements. From July 22, Barclaycard will reduce minimum monthly payment requirements for some customers. According to MoneySavingExpert.com, someone with £1,000 of Barclaycard debt could now take almost 20 years to clear their debt and pay over £1,600 in interest, compared to 9 years and 8 months and £699 in interest under the previous system.

Barclaycard is set to make significant changes to its credit card repayment structure and APR rates. Martin Lewis, founder of MoneySavingExpert.com, has issued a warning to customers, highlighting the potential risks of paying only the minimum required amount. The new structure will essentially mean that many customers could end up paying far more over time as they will be clearing their balance more slowly, meaning more interest is being added.