Some advice needed

MDTyKe

Hey guys

I got a Nationwide Classic card a while ago, (I think its 20-22%?), and enjoyed the interest-free period. However, I ended up not paying off a flight due to a change in financial circumstances, and I have the habit of just paying off the minimum (it's all I can do anyway).

This month, I forgot to transfer money over, and despite the Nationwide(Flex)-NW(Credit) apparently taking 1 day, on the phone they said 3 days so it is now going to default and Im assuming I'll have to pay £12.

I applied for the Abbey Zero but was denied (I bet because I am self-employed). What should I do? I want to wipe this completely, and theoretically can when I get my next pay packet (but that may be a month or so down the line.. maybe 2). Ideally, I want a card that isn't going to rip me off, anytime I have to use it. Any ideas?

I dont know why I was denied by Abbey (Ive never defaulted or anything before) *shrugs*

CannyJock

MDTyKe wrote: »

on the phone they said 3 days so it is now going to default and Im assuming I'll have to pay £12.

Yup

MDTyKe wrote: »

I want to wipe this completely, and theoretically can when I get my next pay packet

There's your answer right there. Remember there will be residual interest so you need to over-pay your card to cover this.

MDTyKe wrote: »

Ideally, I want a card that isn't going to rip me off, anytime I have to use it. Any ideas?

All cards are basically the same. If you don't clear the balance in full you'll be charged interest. You might not like the rates, but they are what they are.

MDTyKe wrote: »

I dont know why I was denied by Abbey (Ive never defaulted or anything before)

Difference between defaulting and missing a payment. You've missed a payment on your Nationwide card and started off by saying you can only make the minimum payments so that implies you're not in a financially strong position.

You might want to look into another 0% purchase card, there's a list of them on the stoozing website (supported by MSE), but be careful not to run up a balance you can't repay.

MDTyKe

What is residual interest? I owe £1500, and get charged £20ish interest a month or something. If I pay off, eg: £1520, is that not enough?

CannyJock

Yup, residual interest is the interest between your last statement and your payment / next statement.

You've got it spot on that you need to overpay the £ 1500 to clear the balance in full.

NickX

MDTyKe wrote: »

This month, I forgot to transfer money over, and despite the Nationwide(Flex)-NW(Credit) apparently taking 1 day, on the phone they said 3 days so it is now going to default and Im assuming I'll have to pay £12.

Right, well definitely call Nationwide, explain this oversight as you have done here, be apologetic and the chances are that they will refund you the £12 anyway. I think its very unlikely that your Credit Report will be affected for paying 2 days late.