• What does an example COVID-19 payment break look like for my credit card?


    During your COVID-19 payment break interest will continue to be charged on your credit card account balance meaning that the overall amount you’ll need to pay back will increase.
    As a result, we’ll need to calculate a new minimum repayment for you when your payment break ends.
    Here are some examples of how a payment break might impact your credit card repayments.





    Credit card Payment break
    Example 1: Outstanding Balance £1800 at 19.9% per annum
    Example 2: Outstanding Balance of £1800 at 26.9% per annum


    Minimum payment before payment break
    £45.43
    £54.09


    Minimum payment during payment break
    £0
    £0


    New minimum payment when payment break ends
    £46.70
    £57.30


    Increase in minimum payment when payment break ends
    +£1.27
    +£3.21




    Some things to remember:
    • The examples above are used for illustrative purposes only
    • Your minimum repayment amounts will depend on your individual circumstances and the minimum repayment terms for the specific credit card you hold
    • The examples above assume you have no additional spending on your credit card during the payment break and that the total outstanding balance is interest bearing throughout (this means the rate of interest being charged is greater than 0%)
    • The COVID-19 payment break will cover three credit card payments – the one for the statement period in which you submit your application form, and the two payments that follow. If you submit your application form just after you’ve missed a payment and before you’ve had your new statement, we’ll count the missed payment as the first in your payment break.

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