Cash withdraw and interest?

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  • PLuKE1986
    PLuKE1986 Posts: 13 Forumite
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    The higher rate will be my £1000, not the £100 on the cash withdrawal. I think I need this explaining in layman’s terms.

    Thanks
    Luke
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
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    You said the £1000 was at 0%.

    If it's now at a higher rate than the cash, it will be paid before the cash - which is what you want, as it will save you interest.

    What amounts are at what rate?
  • PLuKE1986
    PLuKE1986 Posts: 13 Forumite
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    Sorry, it’s been a long day!!

    So £7000 limit, for 22 months, I have £1000 spent on purchases.

    The £100 was cash withdrawal, I think that’s at 27% plus 2-3% fee.

    I have a DD setup for the minimum payment, but during the month I usually pay £200 off on top.

    So I was thinking the extra £200 would clear my cash withdrawal, as that would be more than what I withdrew, so I thought that would wipe the interest?
  • PLuKE1986
    PLuKE1986 Posts: 13 Forumite
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    I looked on the HSBC site and found the following.

    Allocation of payments :-

    Your payment is allocated in the following order:

    Cash Advances
    Purchases
    Standard rate Balance Transfers
    Promotional rate Purchases and Balance transfers
    For further details, please refer to your credit card terms and conditions.
  • fozmcfc
    fozmcfc Posts: 3,098 Forumite
    First Anniversary Combo Breaker PPI Party Pooper Debt-free and Proud!
    edited 19 October 2017 at 7:46PM
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    You're making it more difficult then it is.

    With some cards, payments are made against, whatever the current balance is, but with most cards, payment made, go against the balance on the last statement the customer has.

    So assuming as HSBC have told you you need to clear the £1000 first, it would seem, that payments made go towards, whatever was on the last statement.

    SO............

    Your last statement was before you made a cash withdrawal. YES? Any payment you make now, will go towards the amount on that statement.

    Your next statement will include the cash withdrawal. YES

    Any payment made after your next statement is issued, will go towards the cash withdrawal, the fee and any interest the cash withdrawal costs, as cash withdrawal get interest from day 1 they are made. This is as per what you have stated above under allocation of payments.

    So you are likely to have to make a payment of roughly £105-£115, after the next statement to clear the cash withdrawal, fee and interest.

    Because the interest is still being added until the payment hits the account, your statement after next, may have a day or two's worth of interest from the cash withdrawal, as per post #9 above.
  • PLuKE1986
    PLuKE1986 Posts: 13 Forumite
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    Thanks!
    Like I say, long day, and maybe overthinking it.

    Thanks guys/gals
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