OK, how the flip have Egg managed this??

heavy_t

Can anyone who is more competent than I with maths help me with this? The interest amount charged on my Egg credit card bill has gone up despite the balance being a fair bit lower and the rates not changing. As below (I am not paying PPI and the interest is always applied on the statement date:

Statement: Nov 18 2008
Opening balance: £3469.47 DR
Payment Nov 3rd: £69.39 CR
Merch interest @1.667 per month: £44.45 DR
Cash interest @ 1.941 per month: £16.15 DR
Closing balance : £3460.68 DR

Total interest £60.60

OK, so the closing balance is £9 lower. I'll expect the interest to be a bit lower on the next one....

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Statement: Dec 18 2008
Opening balance: £3460.68 DR
Payment Dec 02 £69.21 CR
Merch interest @1.667 per month: £42.83 DR
Cash interest @1.941 per month: £15.62 DR
Closing balance : £3449.92 DR

Total interest: £58.45

All seems OK. A couple of quid less interest.

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Statement: Jan 18 2009
Opening balance: £3449.92 DR
Payment Jan 02 £92.95 CR
Merch interest @1.667 per month: £43.87 DR
Cash interest @1.941 per month: £16.14 DR
Closing balance : £3416.98 DR

Total interest: £60.01

The interest rate's not indicated as having changed. No other charges are indicated, so how are they doing it? :mad: I have not used the card for any purchases etc. in this time.

nomoneytoday

Are there more days between the statement date and "interest being added" date? Since Dec has 31 days, Nov has 30 days.

BenL

hhmmmm, my 1st thought is that you paid your £92.95 later in the month so accrued a few extra days of interest on a higher amount.

The £3460.68 was outstanding for a longer period in the month than the £3469.47 was the month before.

It may have been due to the amount of bank holidays over the xmas period.

The_Bhoy_3

Without having done any calculations, I would hazard a guess that your Dec interest is lower than expected rather than the Jan interest being higher since a reduction in the balance of £9 wouldn't reduce the interest by £2.

That being the case, I would guess the Dec interest is lower because there are only 30 days in Nov, so you are paying 1 day less interest.

heavy_t

Oops, the last payment I made was Jan 02nd. I have amended the last statement as I had put it down as Dec 02.

heavy_t

I'm going to go with The_Bhoy's explanation for now then. I have asked Egg to explain it to me.

Given this daily application of interest, I think it makes sense (as I get paid on the 25 of the month or slightly earlier depending on weekends) to make the payment as soon as I get paid rather than having an automatic DD on the 2nd