Tuesday 12 July 2011

Money money money

I am having a falling out with one of my credit card providers. It is, apparently, all the Government's fault for some new guidelines that they have brought in.

I have read the back of the credit card statements and I am none the wiser.

Credit Card A, to whom I owe a reasonable but not excessive amount of money want a payment about a pound less than last month... although they will be charging about a pound more intereset.

Credit Card B, to whom I owe just under double what I owe Credit Card A want a payment of nearly £10 more this month although they are going to charge £4 less interest.

Every credit card I have ever met, and I have met a few as one of my providers kept getting sold, it has been the case that even if you only pay the minimum payment it gradually goes down each month. Never up... not when you aren't even using the card.

When I phoned to complain I was told that the new calculations meant that I would pay my balance off more quickly. I pointed out that I might not be able to afford the spiralling payments (given I only work part-time) - but the customer service adviser kept parroting the party line "You'll pay the balance off faster".

Nanny state. Surely it is for me to decide if I want to pay it off faster. Surely I'd make more than the minimum payment if I wanted that. Meddling government. I'm not sure how this helps anyone. If you have a credit card calculating interest and payments you certainly won't use it. You will have less cash to spend in the shops as your bills have gone up. So how is this helping consumer spending and revitalising the economy?

My credit cards are staying where they are. Locked in a box and not getting used - and one day, one day, I'll have them paid off.