Surely the credit card companies make more money if nobody makes any payments each month as they can charge more interest. Also there is more chance of the interest taking people over their limits and hence more revenue from fines.
From my point of view I am on a 9 month offer and the card is maxed out at the bottom of the kitchen drawer so I would rather not have to be hassled with it till next summer.
I believe that it is the law.
Yes it's nanny making sure that we don't get into too much debt.
Works well, doesn't it?
tim
I guess they like to see some cash in the bank rather than just watch figures rise and rise on a computer.
Yes. I think I remember this requirement for a minimum payment being introduced about 30 years ago. I'm not sure that its still a legal requirement, but I believe the credit card companies prefer it like that anyway.
Presumably the "payment holidays" must be permitted somewhere, or at least not banned anywhere.
In message , gordon writes
Hmm are you sure about that? Or is it just deemed as being 'good practice'?
I'm sure they do otherwise how would they know when soemone was trying to do a runner or had no intention of paying.
"Chris Blunt" wrote
If there is a legal requirement, at what level would it be set?
AIUI, minimum payments always used to be 5% of balance. Nowadays they often range between 2% & 3% - and the effective minimum on some cards can be much, much less in certain situations!
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