Neil Smalley

Hope you chaps/ess's can resolve a discussion for me.

Mate of mine reckons there's a time limit you have to pay back money borrowed on a credit card(such a 2-3 years).

I think that there is'nt, as that's what the higher interest rates are for.

I know all cards are different, but we're talking generally.

P1Fanatic

Never heard that myself - as long as you make the monthly min payment by its due date then your ok.

P20SPD

iTrader: (1)

Talking absolute doggy doo. How does he think the CC comapnies make their money. How does he explain how they get their money after 2/3 years. Ermm...court order and attachment of earnings at £2 a week etc, therefore more than 3 years. They only do this if you are an idiot with one though.

TAZMAN

does not make sense..as long as you make the minimum payment the credit card company is making money out of the interest...

fatherpierre

C/C companies don't want you to pay the balance off! The more you owe them and the longer it takes you to pay it off = more £££s for them!

Fuzz

I used a spread sheet program to help me work out how long it would take me to pay off the 3/4/5 grand (i forget) I had racked up
by paying only the minimum payment each month.....
76 freakin years...
off to the bank I went.
loan please...5 years to pay off now and a lot less interest too

Andy

P1Fanatic

Andy - the trick is to keep moving it whilst paying it off to different 0% or v.low interest credit card accounts.

boomer

There is bound to be a time limit, but that is a consequence of the minimum payment clause (e.g. 5%).

Whatever you give them each month pays off the oldest items first, so how many 5%'s does it take to clear an individual entry (do the maths!).

If the new entries hit your credit limit, this will be increased if they think that you can still afford it.

mb

Fuzz

already done that with other debt, all now lumped together in one biiiiiiiiiig bank loan, nice affordable repayment each month knowing that on a certain date (4 years) I will be clear.......
I live for that day...
Andy

MattN

Andy,

I make it 56 years to pay off a 5k loan using just the minimum payment (2% or £5) based on 12% APR.

but it means your average monthly payemt is £32 vs £132 for loan of the same ammount of 4 years. And for the vast majority of that time it's like a £1 (ave) which is why it takes sooooooo long to pay off.

I have too much spare time...