Martin Lewis has warned thousands of credit card customers that a rule change regarding minimum payments goes into effect this week.
On the Martin Lewis Money Show, the money-saving expert explained that Barclays card fees are increasing.
This means that those paying the minimum amount on their bill would increase their monthly payments.
Lewis said it was both good and bad news for customers as they would pay less interest, but cautioned that their cash flow could be affected.
“Lots of people with Barclay cards – your minimum payment will likely go up to 50%,” he told viewers.
“I can’t tell you exactly when it will be as it is personalized. There are many different.
“This is the good news – you will be paying more every month, and that means you will pay less interest and settle debt faster.
“This is the bad news – you’ll be paying more every month, which will drain your cash flow.”
The finance guru provided advice to those struggling to afford the lowest possible payment on their credit card bills. You should contact Barclays and see what they can do.
But, he warned, minimum payments mean you’ll pay more interest and pay off debt longer.
“If you can’t afford it or are struggling with it, speak to Barclaycard. I’m not saying they’ll do anything, but they possibly can,” he added.
“In general, I would always try to pay more than the minimum payment or you will pay a lot of interest.
“Unless you have another debt that is more expensive, in which case you just pay the minimum repayment and maximize it elsewhere.
“In order for this move to affect your cash flow, it’s worth finding out what’s happening. It’s happening this week and you may have to pay more on your Barclaycard when you make minimum repayments.”
The Martin Lewis Money Show airs every Thursday from 8:30 p.m. on ITV.