A shocking recent report has shown how it could take consumers nearly a whole century to clear as little as £5000 worth of debt on their credit cards with Barclaycard.
This means that some consumers would never be able to clear the debt in their lifetime, reflecting just how long credit card debt can linger for some consumers. It is reported that as a result of the credit card giant cutting the required minimum monthly amount it could take some cardholders with a balance of just £5000 a whopping ninety eight years to clear the debt.
Barclaycard recently announced that it was reducing the minimum level of repayment required from cardholders. The previous minimum level was 2.25 percent of the balance or £5 minimum repayment.
However, this has now changed to just 1.5 percent of the balance of £5 minimum repayment depending on which is the greater. For those that plan to make only the minimum repayments on their cards it could take them much more than a lifetime to clear their relatively modest credit card debt with Barclaycard.
Officials from Barclaycard have said that the reason that the minimum monthly amount required has been reduced in this way is to help consumers who may be struggling to keep on top of their finances in the current financial climate.
They claimed that the reduction in minimum monthly required payment would mean that consumers could free up cash to make other payments such as bills or to meet their mortgage repayments and avoid losing their homes.
However, many officials are sceptical about this, and feel that the credit card giant is trying to make millions of extra pounds in interest by letting consumers’ credit card debts fester for longer.
Tags: top, credit card debt, barclaycard, credit cards, monthly required payment, debt consolidation
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