Paying off CC - what's paid off?

TwinLizzy

If I pay off everything, including an amount for the interest, is that a clean slate? I mean, if I then start to use it again after a week, but still in the same statement period, will the amount I paid go towards future purchases rather than previous cash withdrawals?

Thanks

skyrider007

TwinLizzy wrote: »

If I pay off everything, including an amount for the interest, is that a clean slate? I mean, if I then start to use it again after a week, but still in the same statement period, will the amount I paid go towards future purchases rather than previous cash withdrawals?

Thanks

I don't know how to answer your question directly. However, if you wait until your statement is produced and pay off the whole balance shown - it should clear everything. Meaning you won't be charged any interest on your next statement provided you are paying the next statement in full again.

P.S. payments will apply to transactions with lower interest rates first (i.e. balance transfer, purchases). if you don't pay the full amount, they will continue to charge high interest on cash advance.

TwinLizzy

Thanks very much. That's what I want to know really - if I have to wait for a statement before using it again or not.

bigbloke45

You can use it at any time. The amount of monthly repayment is based upon transactions done up to the "due date" i.e. the date when your payment is calculated. As long as you pay the full amount shown on your statement by the due date, any other transactions are carried forward to the next due date.

Haveyou thought about setting up a DD to pay off the full amount each month?
Then you don't have to remember each month. Also set up an on-line account; this will let you see what is going on and will also show you how the payment cycle works.

Good luck!

TwinLizzy

Yes, normally do it all by DD, but accidentally got cash out. Had to pay off the lot to clear the cash bit. Unless you at some point get to a zero balance by not spending and paying off, the cash (with interest charging) would be the bit carried forward each month, wouldn't it? Maybe I've just misunderstood - quite possible! Sorry, didn't make myself clear - see thread here: http://forums.moneysavingexpert.com/showthread.html?t=960593