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Paid Credit Card off but still had interest charged

Hi All

Firstly a bit of background....I had a loan Circa £4,400 with my bank (Halifax) and my credit card balance was at circa £8,390 (Halifax). My credit card rate had increased this past month from 9.9% to 14.9% (ish) so I decided to consolidate all of my debts into one manageable loan.

Well, the loan came into my bank and I settled my outstanding loan amount and then settled my outstanding balance of £8,390 on my credit card a day before the due date (a few days ago). Sorted.....or so I thought.

I have just received this months credit card statement and I have had interest of £72.52 added and therefore still have a £72.52 balance. I am guessing that this is the interest calculated up until I paid it off, but it would be good to get confirmation that this is normal practice?

Also, it is stated that the minimum payment is £72.52, is this correct seen as this is the full balance that is left?

Should I pay this off now, or can I wait for the DD to pay the £72.52, I just dont want to receive a further interest added next month?

Thanks

Comments

  • nzseries1
    nzseries1 Posts: 2,240 Forumite
    You are 100% correct, it is the interest calculated up until you paid it off - this is completely normal. You need to pay the full balance before the due date for two consecutive months to completely clear your card.

    I'm surprised that it says the full payment is equal to the minimum payment, I'm not sure about that one. But if you no longer spend on the card, and pay off the full amount, there will be no more interest to pay.
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    read the T&Cs
    it's likely that the minimum payment is the interest plus plus ...
    as there is only interest then in this case the minimum payment is in fact the balance

    and yes its absolutely normal ....... all CCs work this way
  • DizzleUK
    DizzleUK Posts: 569 Forumite
    It's called residual interest. Remember back to when you got your very first statement- there was no interest on it. If you didn't pay the balance in full, then on your 2nd statement there would be interest for the stuff you bought before your first statement. So subsequently, you need to clear 2 statements in a row before the third will show no further interest.
    Remember this: nothing worth doing is easy.

  • exel1966
    exel1966 Posts: 5,013 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    bretterick wrote: »
    Hi All

    Firstly a bit of background....I had a loan Circa £4,400 with my bank (Halifax) and my credit card balance was at circa £8,390 (Halifax). My credit card rate had increased this past month from 9.9% to 14.9% (ish) so I decided to consolidate all of my debts into one manageable loan.

    Well, the loan came into my bank and I settled my outstanding loan amount and then settled my outstanding balance of £8,390 on my credit card a day before the due date (a few days ago). Sorted.....or so I thought.

    I have just received this months credit card statement and I have had interest of £72.52 added and therefore still have a £72.52 balance. I am guessing that this is the interest calculated up until I paid it off, but it would be good to get confirmation that this is normal practice?

    Also, it is stated that the minimum payment is £72.52, is this correct seen as this is the full balance that is left?

    Should I pay this off now, or can I wait for the DD to pay the £72.52, I just dont want to receive a further interest added next month?

    Thanks

    And now they'll be even more interest added daily against the £72.52, therefore pay in full NOW plus a little extra (= to or greater than the expected amount) to cover that added interest. This will then stop even more residual interest from being added.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    exel1966 wrote: »
    And now they'll be even more interest added daily against the £72.52, therefore pay in full NOW plus a little extra (= to or greater than the expected amount) to cover that added interest. This will then stop even more residual interest from being added.


    not so
    paying in full for two consecutive months stops all further interest charges
  • exel1966
    exel1966 Posts: 5,013 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Yes I'm well aware of that.

    From the OP's post we don't know exactly the dates involved/other spending etc. The Op states the minimum payment is £72.52 which he also states is the FULL balance. Since when has the minimum payment due been equal to the full balance ?
  • DizzleUK
    DizzleUK Posts: 569 Forumite
    exel1966 wrote: »
    And now they'll be even more interest added daily against the £72.52, therefore pay in full NOW plus a little extra (= to or greater than the expected amount) to cover that added interest. This will then stop even more residual interest from being added.

    If the £72.52 is paid before the due date that will be the end of the matter. Since £72.52 is also the minimum payment, any amount paid less than this (including paying nothing) will incur late payment fees.
    Remember this: nothing worth doing is easy.

  • oscar52
    oscar52 Posts: 2,272 Forumite
    exel1966 wrote: »
    Yes I'm well aware of that.

    From the OP's post we don't know exactly the dates involved/other spending etc. The Op states the minimum payment is £72.52 which he also states is the FULL balance. Since when has the minimum payment due been equal to the full balance ?

    The monthly payment is:
    - the full outstanding balance if it is less than £5, but otherwise the greater of:
    • An amount equal to the total of (i) 1% of the outstanding balance on your account; (ii) interest applied to your account in that month; (iii) all Default Sums incurred in that month; and (iv) one twelfth of your Annual Fee, or
    • £5
    The above is taken from Cap One website. I have higjhlighted point 2 in bold. The minimum payment is equal to the amount of interest applied to the account.
    No Longer works for MBNA as of August 2010 - redundancy money will be nice though.

    Proud to be a Friend of Niddy.
    no idea what my nerdnumber is - i am now officially nerd 229, no idea on my debt free date
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