If people don’t understand or know this , they should not be let anywhere a credit card.

My grandmother always lived by a simple rule: DON'T BUY STUFF YOU DON'T NEED, WITH MONEY YOU DON'T HAVE.

There is a much more simple solution - if you can’t pay off your balance within 2 months maximum, don’t use your card. Credit cards along with cars that people really can’t afford, just keep so many people in a life of perpetual debt.

The idea that it would take 10-20 years to pay back £1000 is crazy to me. You're going to be paying for those purchases long after they've passed their usable life. Your monthly payments need to be as much as you can afford, not the minimum the bank will allow.

My CC is set up by DD to withdraw the balance on the account at the end of each month, no matter what that balance is, so basically is just 0% credit for up to one month at a time, which is handy. But if I could not be sure I would be able to clear the balance at the end of each month, then I'd not be using the CC at all. My only real outstanding debt, is my mortgage. Don't buy things you can't afford, and you'll never get into debt.

The only thing poor people ask is 'How much a month'

Take another balance transfer offer from other credit card providers.

Just don't have a card, I know it's easy to say that and circumstances differ person to person. 18 months ago I started clearing up my finances with the impending cost of living rises in my mind..it has paid off for me. I don't have car finance now, just run my 12 plate car and pay the bills as they come and a lot happier for that..just mortgage payments to deal with now

I feel that the government should exercise more control over minimum repayments. Barclaycard's move is nothing other than a grab for interest payments from those who have been given too much credit. And that's immoral. P.S. I pay off my cards in full, each month and will advise my niblings to do the same.

I have spent the last 5 years concentrating on clearing my debts. I do have 2 credit cards but they were the first things that I paid off. Now, I only use them when buying online and pay them off every month so I haven’t paid a penny in interest for a couple of years now. It was hard work paying them off but so worth it.

Quite sinister for Barclaycard to post out to you when you turn 18. I didn't give them my details, not cool.

Paying only the minimum is never a good idea, regardless of the amount. He's talking as if Barclays are making people pay more. These people are already choosing to pay only the minimum and so can't expect to clear it quickly without paying a large amount of interest.

Who needs child benefit if you're on £80k?

The problem is companies now only keep recordings for 3 months and keep complaints open for longer

Martin for prime minister

I pay more into my pension to qualify for child benefit.

Once again, proof if proof were needed, that its expensive to be poor. People who can afford to just pay things off in full save thousands compared to people who are forced to pay the minimum because they cant afford it. (yes using a CC beyond your means is a bad idea, but sometimes credit is unavoidable)

So the last financial crisis was banks giving house loans to people who can’t afford the repayments, the tax payer bailed the banks out. Now we are in times of high inflation and the banks are advertising and giving out more and more credit? What’s the motive for the banks this is all unbacked consumer credit?? Where is the government regulation after the last bail out??

love martin

You should be explaining where 'credit' actually derives from Martin. That way there may be a slim chance that people understand why 'prices always seem to be going up' is the same mechanism as ' my house has gone up in value and I feel more wealthy'. Banks do not lend you money. They don't actually 'lend' you anything.

So many people switching to Nationwide

I’ve never allowed a direct debit to be set up to pay the card. Set up a standing order (fixed of course) you then have control.

Nothing to stop you setting up a standing order to overpay or increase it.

Martin Lewis is Loaded :).

Ask yourself before you buy. Do I really need it!

So many people do not understand how money, interest and finance works. 🤦‍♀️

I just do credit card burning. Use and pay off while i have 24m 0% APR promo. Then cancel it when that ends and start again with a different one. If you pay a single penny in interest then credit cards aren't for you.

Don't forget to use 0% transfers cards! You pay a one of fee usually 3-4% of the balance and you get a year or more interest free on the balance transferred

Most important point that was missed, ideally you shouldn’t be paying any interest on a credit card.

Taxes of someone earning 13k a year paying benefits for people earning 79k because they had a kid ...

The £50k answer was a bit messy. Basically you want to put as much as you can into tax free savings, and ISA's and Premium Bonds are the two most commonly used methods. You're limited to putting £20k each tax year into ISA's and can only have up £50k in Premium Bonds. So you could put £20k into one or more ISA's and £30k into Premium Bonds - unless you've already used up some of your ISA allowance this tax year and/or already have some Premium Bonds. ISA's pay a rate or return (an interest rate in the case of Cash ISA's) and Premium Bonds is a prize draw.

why not just pay dbl the min payment, then you will cover the debt no probs

These companies exploit people who don't understand how they make their money and young people often fall into the trap of trusting them on some level. I remember getting into trouble and my cousin did too and it took me a while to dig myself out of the debt when I realized just how punishing the interest is and how it accumulates. I was not a reckless character either. When you're young and budgets are tight it could really ruin you and lead to depression and all sorts of bad things. I wonder if they teach people in schools to avoid financial traps laid by the system that's all around us. They didn't when I was young. If you don't buy things you can't afford but set up a monthly payment that you can afford into a savings account you will soon find you have money to buy things and you don't even think about it.

If you earn £80000 a year you are in the top 5% of earners in the UK, why would you be entitled to benefits.

Unless. something has happened and one can't do otherwise, it's never a good plan to just get by on making minimum payments.

What if you always pay the last statement balance?

Getting involved with a credit card is insanity if you don’t pay double the minimum amount you are going to a world of pain

Credit card balance should always be something you can clear within the month you do the spending. I do all my spending on my credit card because it helps maintain a high credit rating, but I pay it all off each month, never carry a balance between months

Stop using credit cards people!!!!!!!

My Facebook feed is full of people claiming they never use algebra in their daily lives. I'm pretty sure Martin's advice is lost on them.

A debt relief order wrote off my 12k of credit card debt.

Left Barclays went to first direct

That kinda sounds fair. If you double the repayment term then you double the interest. Why is that wrong. £700 x 2 = £1400. Yes I know it’s £1600 but ur doubling the repayment time plus 5 months.

that's a massive debt trap, and a long-term source of income for Barclays, I would never knowingly bank with them.

This sounds really weird “ don’t spend money you haven’t earned yet”🤷🏼

You don’t him to tell you this you can find it yourself on the internet

You can renagshate your debt the megga Ritch and companies nagoate debt every day

Just get 0% purchase card for 18 months and save the money in the bank at 5 % Easy Who pays interest on credit cards?

@currys sort it out.!!

GEEZUS.

disgusting that people earning 80 k. so you are talking about people in the top 5 percent of earners, are claiming ANY SORT of benefit. LOWER the child benefit threshold. make is say 30k, and then double the payments for those that actually need it

So i hsve two points on this video. Barclays are doing is good for both them and the peoplr thay actually need to pay minimum payments. They get more interest over a long time and the those thay are struggling have to pay less per month. Yes the overall nunbers are high, and this is how you can very easily manipulate figures to suit your narative. What are the chances someone is paying the minimum from day one until the end. You pay the minimum while you have to because times are hard. Martin is very much speaking as someone who yss noney. The caller highlights everything wrong with society, she is in the top 5% of earners in the country yet expects more help from the government. My solution -scrap child benefit for all. -pay unemployment for a maximum of 1 year (if no work after a year then paid military service or no further benefits) -benefit for those who genuinely can't work due to ill health disability, but actual help trying to find a suitable job for them even if it is only a few hours per week (the job centre is a joke at the moment ) -more support for the elderly that cannot afford good care. Benefits needs to stop being a lifestyle choice. and the services on offer need to overhauling to actually help people come off benefits rather than just ticking a box

This guy is so interested in proving how clever he is, he misses the point completely - ie using credit cards to borrow money IS THE MOST EXPENSIVE WAY TO BORROW AND YOU SHOULD NEVER DO IT - always pay off the full balance or don't have one at all. If you want a loan shop around the banks and get the lowest APR you can

Brain dead update on money yet again...

Paying only the minimum is never a good idea, regardless of the amount. He's talking as if Barclays are making people pay more. These people are already choosing to pay only the minimum and so can't expect to clear it quickly without paying a large amount of interest.