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Interest
ad2008
Posts: 2 Newbie
in Credit cards
I finally managed to pay off the outstanding balance on my credit card, on time, and thought that would be the end of that. When I received my next statement, hoping to see a cleared account, I found out that I was now have been charged interest on a cleared balance.
Has anyone ever had this happen to them before?
Has anyone ever had this happen to them before?
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Comments
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Did you withdraw cash on your card? If so, interest is charged on this from when you withdraw (no interest free period)0
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This will be the interest accrued in the month before you repaid the balance, it is correct."You've been reading SOS when it's just your clock reading 5:05 "0
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Usually you have to clear the balance two months running to be totally clear of any more interest. Called 'residual interest' I think...Official DFW Nerd Club - Member no. 784 - Proud to be dealing with my debts0
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I did but it was ages ago (at least a year ago) as I cancelled the card and was just paying off the balance. would it have accrued interest from last months interest?0
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I think this is how it works:
Let's say you have a statement dated September 1. Let's assume you paid the full statement balance of that statement off on September 7.
On October 1's statement, you will see residual interest that accrued from Sep 1 - Sep 7.
Please someone, correct me if I'm wrong, as this is only my understanding of it!You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.0 -
Thats my understanding of it too. First (and only) time I got hit by it I phoned up the bank and it took 3 different calls until someone managed to explain what the charge was in laymans terms. I think if the staff at the call centres were better educated regarding this there wouldn't be so much confusion.0
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I did but it was ages ago (at least a year ago) as I cancelled the card and was just paying off the balance. would it have accrued interest from last months interest?
Yes you will get charged interest on interest which is known as residual interest.
One way to avoid this is to slightly overpay the due balance if you're expecting residual interest to be added. That will stop any further residual interest from being added to the account.
As previously said you must have a zero balance for two consecutive months.0
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