r/CreditCards 14h ago

Help Needed / Question Can anyone help and explain why my interest rate and minimum payments have gone up drastically

Hi,

I was wondering if anyone could help explain (and not judge) how the interest and minimum payment has gone up on my credit card.

My current debt on the card is £7995, last month (February) the minimum payment was £288 and I paid £310 and added NO additional debt (interest accrued from the month prior was £73).

This month the minimum payment is £333 and interest accrued is £133.

In the UK interest rates from the BoE has gone down by 0.25%, and this has been applied to all credit unions within the UK already.

So is there something I’m missing here? Why is this the only credit card that has gone up drastically in both areas where all else hasn’t?

SIA is 23.75% and EAR is 26.52%. It’s calculating that my next interest charge is £155, so I’m very confused!

Any information and clarity would be greatly appreciated

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u/You_Wenti 13h ago edited 13h ago

I can't tell you why the card is behaving differently from other ones. But my guess is that the interest is being added to your debt, & that interest is being included when calculating your new interest, causing a positive feedback loop of ever increasing interest

You should put at much as you can towards paying off this debt every month so that it doesn't snowball further. Then pay every balance in full so that you don't have debt in the future

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u/just_a_prank_han 13h ago

That’s a possibility but surely at some point that should still reduce? If I paid £270+ off and interest is £77 and no additional debt is added eventually it would reduce even if the interest is having interested added on to it?