Barclaycard increasing minimum payments will be a shock – CEO Steve Wiley comments

Steve Wiley, CEO, Monva comments on Barclaycard Increasing minimum payments: “The changes this week from Barclaycard to increase their minimum payments may come as a shock to many of their customers. A 5% minimum repayment used to be the standard for credit card repayments in the UK before the American banks arrived in the 1990s who over time lowered it to 1%. It’s actually a responsible thing to do to help with increasing the speed in which debt can be repaid, but bad timing given the pressures people are facing with repayments in the current environment. We know from our data that over a third of UK adults (36%) accumulated a new year debt equating to £4.1 billion over the festive period and 40% are unsure how they plan to pay back the debt. Despite the pandemic and lockdown reducing the ability to spend money on everyday items, Brits have found themselves in a tricky position in January, with no clear plan to pay back their debt. For those who will struggle with Barclaycards increased repayment, they should consider switching to MBNA or Santander who offer 1% minimum repayments, or HSBC who offer 2.5% minimum repayment. When comparing new offers, customers should always use an eligibility checking service to ensure no risk to their credit file.”