Martin Lewis issues warning to millions of Barclaycard customers over 'worrying' change

Martin Lewis has issued a warning to people with a Barclaycard.

The finance guru has urged people to be aware as the bank is changing how repayments are set for millions of customers. From July 22, the bank is reducing the proportion of debt many of its customers have to repay as the monthly minimum.

Customers will be given at least 60 days notice of the change and bankers can close their account and opt to repay their balance under existing terms but will be rolled onto the new system if they don't act. Martin's Money Saving Expert newsletter explained: "Minimum repayments are already designed to keep you in debt for as long as possible, because they decrease as your debt does – and lowering them just amplifies this effect."

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The Good Morning Britain broadcaster warned the change could double the total cost of your debt". He said: "This is a worryingly under-the-radar change by the UK's biggest credit card provider. 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% of the balance to 1% 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."

"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."

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