Credit Card Balance Worries To Be Eased Virgin Money Lead The Way

Courtesy Virgin Money

For many in these times of recession and global economic debt, both national and personal, crisis any small help to ease the burden is welcome.

Earlier in the year the new credit card joint industry agreement was drawn up and comes into effect in January 2011. In a move to hold up their brand ambition to make “everyone better off” Virgin Money has announced a plan to restructure their customers credit card balance payments.

In a switch to a positive payment hierarchy their customers that don’t pay off their full balance each month will now have their payments allocated to paying off their credit card balance that accrues the highest interest rate first, this will mean that in most case’s customers will be better off.

Virgin state that this will mean customers transfering a £3000 balance to a Virgin Money card at a 0% promotional rate and then spending an additional £1,000 at a higher standard rate over a 12 month period will save around £70 per year since their payments will go towards paying off the higher rate spending first. (Based on 0% for 12 months on purchases and balance transfers. Includes 2.98% balance transfer fee)

The new terms and conditions come into effect on September 1st 2010 and Grant Bather, spokesman at Virgin Money said: “Changing the order of payments is the next logical step in the enhancement of our credit card range. Our aim is to make everyone who is a Virgin Money credit card customer better off and we hope this change goes some way to achieving that.”