Confused, Advice appreciated

Silaqui

Hello,

Seem to be spending a lot of time on here recently!
I have just had my credit card statement through for this month. I have not used the card at all (it's in bits somewhere!) and have a DD set up to pay off the minimum payment, as well as paying of extra through the pad thread.

The minimum payment for last month was about £73, which I paid, on time, and have also I also paid roughly an extra £40. This is showing up on my statement.

However, the statement is showing interest added on of £78, with a minimum payment for next month of £82 - despite the card having a lower balance? If I hadn't have made the overpayments the balance would have actually increased.

My initial thought was that they might have increased the interest rate but they are still all the same as compared to all my previous statements.

So how can the interest and minimum have gone up? Any thoughts?
Thanks in advance,
Silaqui
x

Stinkybell

What sort of card is it, and how long have you had it? You may be coming to the end of a deal eg 0% purchases for 6 months. If in doubt, ring them and check!

Innocent_Guy

Interest is a month behind. Next month with take the lower balance into concideration

Silaqui

I've had it a good while now (just over 2 years) and haven't actually used the card in months. I wasn't aware of any promo's on it but I guess there could have been and I didn't know about it.
I'm just looking up the number now!
Thanks for replying so quickly
x

CLAPTON

interest is worked out daily so if the lower figure covered february then that might explain the lower interest

Silaqui

But it's been consistently payed down, Innocent guy. I've made sure that I've paid the min payment plus AT LEAST a fiver extra (I know it's not a huge amount but it should still be reducing it surely)
S

Silaqui

So the interest I'm being charges this month is for Februarys balance, essentially?
S

Silaqui

Just spoke to someone at A&L and he pretty much said what you all have. I am still struggling to get my head around the fact that the same percentage of a lower balance comes to more that a higher balance, but I'm sure it's all worked out properly somewhere along the line!
Thanks for replies.
S

Innocent_Guy

Silaqui wrote: »

Just spoke to someone at A&L and he pretty much said what you all have. I am still struggling to get my head around the fact that the same percentage of a lower balance comes to more that a higher balance, but I'm sure it's all worked out properly somewhere along the line!
Thanks for replies.
S

Hiya, the base the intrest charge for March on Februarys balance.
Hope that clarifys it

Best of luck

dc

Silaqui wrote: »

Just spoke to someone at A&L and he pretty much said what you all have. I am still struggling to get my head around the fact that the same percentage of a lower balance comes to more that a higher balance, but I'm sure it's all worked out properly somewhere along the line!
Thanks for replies.
S

As interest is done daily as has been said, then Febrary only having 28 days will most likely be less than March with 31 days of interest.

The extra 3 days will make the interest charged approx 10% higher, even on a slightly smaller amount.

Sainsburys confused me regularly with similar "increases" of next month interest, as in your case having paid some of the balance off, until they gave me a daily printout to explain it.

jen_a_c

Just following on from this - is it possible for the monthly interest charged to be MORE than the minumum payment? (e.g. debt rises not reduces?)