need help...ive been soo stupid

NickX

louiser123 wrote: »

i pay my balance off each month so if i pay my balance off again as i plan to do it will be back to 0 balance again am i correct??

Unfortunately not. Cash Advances accrue interest from the Date of the Transaction and it will require you to clear the full Statement Balance on 2 consecutive statements for the interest to stop accruing.

louiser123

but if my balance is back to zero when i pay it, which is as soon as statement is produced as i bank online and pay it the day its produced how can they charge intrest on a 0 balance??

statement date is 28th, i withdrew on 2nd so i will be charged intrest from 2nd to 28th, pay full balance on 28th back to zero surley, i will have paid all interest to that date and then cleared it so how can they charge on a 0 balance oooh im sooooo confused! lol

ldn-100

Assuming you make no other purchases or withdrawals, you will be charged interest from the day the withdrawal is made to the day your account is fully paid off. In the rare cases I have used cash advance I have not even waited for the bill, just paid off the full balance of the account as soon as I am able.

Francesanne

emandden wrote: »

i got the card in march,bought a second hand car and paid a few bills but not used it since i went over my limit in june.i cut it up a while ago.its my first credit card and definately my last!!

Credit cards are great if used with great care. Fatal to go mad and spend like there's no tomorrow. I hate paying charges so I make sure I never go over my limit and pay my bill off in full each month.

NickX

louiser123 wrote: »

statement date is 28th, i withdrew on 2nd so i will be charged intrest from 2nd to 28th, pay full balance on 28th back to zero surley, i will have paid all interest to that date and then cleared it so how can they charge on a 0 balance oooh im sooooo confused! lol

If your payment has cleared into their account before the 28th, then I agree there should be no further interest accrued.

However, most people wait until they get the statement which is a few days (2nd class post), then pay either online, at the bank or by posting a cheque. Each of these methods will take a few days to process. In the case of paying by Direct Debit, this is usually taken on the Due Date which can be nearly a month after the Statement Date.

What I am saying is that there is usually a gap between the Statement Date and the Date that payment is made. During this time interest continues to accrue and this is why you usually need to clear the balance the following month aswell. This is known as "Residual Interest" and represents interest accrued between the last Statement Date and the date that that Statement Balance was settled in full.

Hope this makes sense.