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Interest Payments When Paying Early
Foxington
Posts: 19 Forumite
in Credit cards
Apologies if this has already been covered, I wasn't able to find anything by searching.
I'm thinking of cancelling the direct debits on my credit cards and paying the (At the moment) minimum payments the day I get the statements. My question is whether this would decrease the amount of interest I am charged due to not having the 20 odd day gap between statement and direct debit generating interest?
It may not amount to more than a few pounds, but every little helps (To coin a phrase!) as long as I don't get charged any late fees which would negate any benefits...
Has anyone had any experience of this? Are there card companies that don't charge different interest for paying early? Will it affect my standard rate when they realise what I'm doing and increase it to compensate?
Thank you in advance for any answers/advice/warnings! :beer:
I'm thinking of cancelling the direct debits on my credit cards and paying the (At the moment) minimum payments the day I get the statements. My question is whether this would decrease the amount of interest I am charged due to not having the 20 odd day gap between statement and direct debit generating interest?
It may not amount to more than a few pounds, but every little helps (To coin a phrase!) as long as I don't get charged any late fees which would negate any benefits...
Has anyone had any experience of this? Are there card companies that don't charge different interest for paying early? Will it affect my standard rate when they realise what I'm doing and increase it to compensate?
Thank you in advance for any answers/advice/warnings! :beer:
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Comments
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I'm thinking of cancelling the direct debits on my credit cards and paying the (At the moment) minimum payments the day I get the statements. My question is whether this would decrease the amount of interest I am charged due to not having the 20 odd day gap between statement and direct debit generating interest?
It would, but not by very much. You'd make far more difference if you could make an additional payment on top of the minimum, however small.Has anyone had any experience of this? Are there card companies that don't charge different interest for paying early? Will it affect my standard rate when they realise what I'm doing and increase it to compensate?
They are unlikely to care when you pay, as long as you pay before the due date.0 -
As a rule of thumb if you DO NOT clear the balance in full each month then the sooner you pay off your statement (partially) the less the interest the following month will be as you will owe less for a shorter time.
ALL card companies will charge the same interest rate set to that account regardless of when you pay your bill.0 -
Excellent, thank you for your advice
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