Reduction in minimum payment on credit cards

[Dave A]

I see Standard Bank has reduced the minimum repayment due on their credit cards from 5% to 3% of the outstanding balance. This is because

Given the current economic climate, customers are keen to find ways of reducing their monthly spending and are open to the idea of being able to repay less on credit-related accounts without going into arrears.

...further on...

This change may help you to manage your monthly expenses more efficiently.

I guess - as long as you don't consider their interest charges as an expense

I'm quietly wondering what percentage of that repayment would actually end up going to capital.

What interest rate are credit cards typically charging at the moment?

[AmithS]

I also received this letter from Standard Bank - They say they have done this as it is inline with global trends ?

[Blurock]

Is this a way of earning more interest for the banks? The more you owe, the more you pay. Until you can pay no more.

Is it not ironic that the banks will give you a credit card with an obscene credit limit that you can spend at will, but they will not give you an overdraft for the same amount. The credit act always comes as an excuse. Does it not apply to credit cards as well?

Do not become a slave to debt - stay free!

[murdock]

dont become a slave to debt...wishfull thinking for some.

cost of living going thru the roof...

wage increases 5 % electricty increase more than 10 % and thats only one item...if you look at the living cost now and what people earn compared to what it was 5 or 10 years ago...we are going backwards...look at the fuel price...imagine if your wage was linked to the petrol price you would be doing ok...comes down 20 cents goes up R2

or this country will end up like all the other african countires...the wage gap is going to have to close sooner or later...what makes me laugh is a doctor manager who i know studies for X amount of years earns R 50 - 100 000 plus a month yet he whines to pay R1-2000 to a domestic worker....mmm something is gona pop sooner or later...

[AmithS]

I am with you on that 1 murdock, something is gona pop sooner or later

[Dave A]

Is this a way of earning more interest for the banks?

That was pretty much my thought.

Just last week I had someone crying on my shoulder because Standard Bank had repossessed their wheels - despite being under debt administration since November 2009 and Standard Bank getting their payment every month in terms of the debt repayment schedule. Unfortunately the administrator failed to have the restructured debt schedule made an order of court within 6 months after the debtor filed in terms of the CPA. Standard Bank have caimed to be outside of the debt review process ever since and rejected every attempt by the adminstrator to reschedule their repayments, even although the repayment scheduled fell within the agreed parameters.

Kinda makes a mockery of the "in the interest of our customers" reason.

[Blurock]

dont become a slave to debt...wishfull thinking for some.

cost of living going thru the roof....

Exactly why one should avoid debt where you can. Certain debts are unavoidable, but can still be managed in a way: bond vs rent; transport cost vs car instalment etc. You can however decide to buy a cheaper car - demo or even a second hand. Do you really have to have a swimming pool or the biggest LCD TV?

By buying furniture or appliances on HP, you will end up paying at least 20% - 25% more. If you paid for that with your credit card, you will end up paying even more.

Take a loan to go on holiday? No way!

[paulnixon]

You can reduce the credit card rate if you select the right approach.Opens a bill on your shoulders is not the way to live a life.you can make the difference while the get the information before paying the bills, or interest.the tips are as under below: 1. understand the structure of the debt, 2.don't avoid to talk with the creditors.