Est interest - next statement?

KrazyFool

Does anyone understand this line in your monthly credit card statement?

At the bottom of the list of items is this line, x amount of estimated interest on the next statement. I dont take too much notice of this and assume its because i may have been late paying the previous month and it will be the amount of interest that will be added to next month. i just take note of the final figure at the bottom in BOLD.

In the box with the statement date, current balance (the same BOLD figure) and the due date.

I pay the full amount before the due date yet im still paying interest on the next statement. how can this be, how can they 'estimate' how much interest i should pay?

so for the last year i have been paying the 'full' amount albeit a couple of times 1/2 days late, interest on the interest because it hasnt been clear that i have add that est interest to the current bold figure to make the actual final figure that i have to pay in that month.

is this right? I think its blatantly misleading :mad:

can i claim this est interest back as had i known i had to include it to the monthly amount to pay i would have paid it!

butler1882

ESTIMATED INTEREST - this is based on you only paying the minimum amount by the next due date. The actual interest you will see on your next months statement will include new transactions and any changes to your interest date or statement date.

Thats what it says on the back of my capital one statement. Hope it hels a little

KrazyFool

yes i understand that but when i have paid in what i thought was full and well before the due date i was still charged interest because i hadnt included the est interest

oscar52

Not exactly. The interest you were charged accrued between when your statement was produced, and when your payment was recieved - if you pay your next bill in full and by the due date no further interesrt will be charged.

KrazyFool

date..... item... £.......................

---

xx/xx/xx A....... 10.00................ ! State.date........ !
xx/xx/xx B....... 5.00.................. ! xx/xx/xx............ !
interest charged 12.00............... ! .......................!
est interest next statement 20.53 !Current balance... !
..............................................! 27.00................ !
new balance 27.00 ...................!....................... !
...............................................!.min payment......!
...............................................!.5.00.................!
...............................................!........................!
...............................................!due date............ !
...............................................!xx/xx/xx............. !

This is how it appears on the statement. where i see the new and current figure both of 27.00 i assume my monthly bill is 27.00 so i pay in 'full' of 27.00

But apparently i should have included the 20.53 and paid 47.53 so on my next statement i will how be charged interest on that 20.53 i didnt pay

lolarentt

As already said the 'estimated interest' in this case £20.53, is what you'd be charged if you only paid the minimum figure this time, not the 'new balance'

KrazyFool

but i didnt pay the minimum amount i paid the £27. so when would i be charged/ have to pay the est int £20.53, in this months statement (where its mentioned) or next months?

lolarentt

KrazyFool wrote: »

but i didnt pay the minimum amount i paid the £27. so when would i be charged/ have to pay the est int £20.53, in this months statement (where its mentioned) or next months?

You wont have to pay it, assuming you pay the new balance in full, and didn't have any arrears in the recent past (which sometimes adds a bit of extra interest for a month after clearing)

KrazyFool

apparently i will so i have to pay the £47.53, i asked because i was and am now confused as to which actual figure i look at to pay. will have to pay it and keep an eye on it for the next few months

its like been told in garages thatll be £42.50 + vat - ok so did that figure include vat or do i have to get my calculator and work out the actual cash i need to give them is $49.93 grrrrrrr makes me mad.