Barclaycard is cutting the minimum amount its customers have to repay each month.While the move may sound like good news on the surface, it could well mean you're in debt for longer and end up paying more interest. At the moment, most Barclaycard customers have a minimum repayment of 3.75% of their balance, 2.5% of their balance plus interest, or £5.
Founder of MoneySavingExpert Martin Lewis says the change is 'worryingly under the radar' and urged customers to check if their repayments are set to the minimum amount.'Minimum repayments have always been credit card firms' secret weapon. Letting people repay little looks appealing – hence why Barclaycard says this is about 'flexibility'. Yet it takes flexibility to kick your own backside, and this will hurt some just as much,' he said.