Martin Lewis issues new warning to people with Barclaycard ahead of major change (2024)

Consumer champion Martin Lewis has issued an urgent warning to everyone with Barclaycard ahead of a major repayment change due to start this summer. The financial guru posted on social media that the credit card giant is cutting the minimum amount people need to pay back each month from July - but it’s not the win some people might think it is.

Posting on X, formerly Twitter, the founder of MoneySavingExpert.com (MSE.com) told his 2.9 million followers that while a change to minimum repayments might ‘sound trivial’, it could actually see millions of borrowers double the interest they pay and take longer to clear their debt.

This week’s MSE.com newsletter goes into more detail about the changes set to start on July 22 and explains how every Barclaycard customer with debt on their card who does not have a zero per cent deal, could end up taking over a decade to clear a balance of £1,000 and cost you nearly the same amount in interest.

MSE.com also explains that customers will be given at least 60 days’ notice before the change, which means people should expect to receive communication from Barclaycard between now and May 23.

Money experts at the consumer website said: “You'll be given at least 60 days' notice of the change, during which time you can opt to close your account and repay your balance under your existing terms - if not, you'll be automatically rolled onto the new system.”

Also commenting on the in-depth guide on MSE.com, Martin called this a “worryingly under-the-radar change by the UK's biggest credit card provider” and expressed concern that most customers may ignore it without realising the long-term implications.

He continued: "Changing minimum repayments looks innocuous, even trivial - most customers will, I suspect, have ignored it. Yet this seemingly technical and bland change is a huge danger signal. I wish I could light up the sky with neon signs shouting that, for those unaware, if paying interest on their credit card debt, it can easily DOUBLE the total cost of debt by the time you clear what you owe, meaning you pay £100s or £1,000s more.

"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.

"Barclaycard's reduction, for many, from 3.75 per cent of the balance to 1 per cent of the balance - means while people's repayments will cover their interest, they will clear far less of what they owe, prolonging the debt, keeping people indebted year after year after year, and the interest racking up year after year after year."

Martin added: "I would urge ALL Barclaycard customers to sit up, take note of this, and check now if you only pay the minimums. If so, unless you've other, even costlier debt you're clearing first, if you can't afford to repay in full each month, try to make a FIXED monthly repayment based on what you can afford – even if it's the same amount as your current minimum - rather than letting your repayments decrease as you owe less.

"This can radically reduce the length you're in debt and the interest cost. The more you can repay, the less interest you'll be charged."

The full guide to Barclaycard repayment changes and how it affects you can be found on MSE.com here.

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