Question re interest

jay78

I am looking to pay off a credit card balance and close the account for good! I have until 10 June to make a minimum payment (statment date 16 may). Do I need to calculate the approximate interest that will be added the following month then add to the statement balance to get a zero balance?

Cheers

mintymoneysaver

Yes! We learnt this when we tried to close a card and then got another bill the next month purely for interest.Alternatively close it this month but be prepared for an interest only bill next month.

Robert_Sterling

Or overpay it this month then ask for the excess amount to be paid back when you then close the account.

The_Boss

Why not just pay the minimum payment, as you imply you are going to do, then wait for the next statement to arrive. Pay this figure off in full before the payment date and you will have paid the exact amount. Wait a few days after this and then ring them up to close it.

King_Of_Fools

The_Boss wrote:

Why not just pay the minimum payment, as you imply you are going to do, then wait for the next statement to arrive. Pay this figure off in full before the payment date and you will have paid the exact amount. Wait a few days after this and then ring them up to close it.

I beleive that there will be interest over-and-above that mentioned on the next bill due to the time between the bill being printed and being paid off - so that would not work.

The_Boss

King_Of_Fools wrote:

I beleive that there will be interest over-and-above that mentioned on the next bill due to the time between the bill being printed and being paid off - so that would not work.

How does that work? As long as the card is cleared by the payment date, no interest will have to be paid.

grumbler

The_Boss wrote:

...As long as the card is cleared by the payment date, no interest will have to be paid.

Only on purchases and only if the previous balance was paid in full and on time ...

King_Of_Fools

The_Boss wrote:

How does that work? As long as the card is cleared by the payment date, no interest will have to be paid.

Only if there was no balance carried over from the previous month.

If there was a balance carried over then you will already be paying interest on it. If the bill is printed on the 1st of the month it will detail the interest payable for last month (up to 1st). If the payment date is the 20th and you pay the bill "in full" on 18th you will still not have paid the interest that would have been applied between the 1st and the 18th and that will show on next months bill.