What does 'Fixed at First Minimum Payment' mean please *talkinginpeace*?

[MoveAlongNow]

Hello all,

I am de-lurking for the first time ever to ask what may be a very stupid question . I have used the very impressive looking credit card debt repayment spreadsheet that TIP so kindly created. It looks as if I can pay my horrendous debt off much quicker if I fix at first min payment but what does that mean?? I was intending to just chuck as much money as I can at the bill but should I be going about it a different way? I should be more clued up by now ffs, am 34... thanks in advance

[BobTheFly]

As the balance goes down, the minimum required payment will go down. But you can clear it quicker if you keep paying what you've always paid. Does that make sense?

[ilovepowerhoop]

does it mean that as the balance owing decreases you stick to the higher amount you paid at the start rather than decreasing your repayment as the balance owing decreases?

[ilovepowerhoop]

e.g. if the first payment you make is £100 then you stick at that amount rather than decreasing your payment as the balance decreases.

[MoveAlongNow]

wow such quick replies, am chuffed! Thanks! yeah that makes sense now, that was my plan all along. I've set up a SO for 150, but am going to top up as and when I can. I think I might even be able to manage 200 most months, but don't want to commit too much until some work issues fall into place like do I still have a job come September Big relief, I think I'm on the right track after all. Thanks for the inspiration, I have been lurking for awhile. Nice to know others have been there too

[TalkinPeace]

Hiya Movealong

If the amount they took from you wast month was (say) £102.01
next month they will take about £100 and then £98 and so on
BUT
if you keep paying £102 then you are paying a little bit extra off the capital every month - but that rises REALLY fast towards clearing the debt.

Credit card companies hate me
I hate them more