Interest on paid off credit card

Destinedtobeskint

Okay, so I managed to obtain a loan at a lower interest rate than my credit card,with the intention of paying said credit card off in full,never to use the card again. A light at the end of the tunnel and a date by when I will be cleared of this debt!
Did just that,paid the amount shown thinking that would be the end of the credit card.
When it did finally show that it had come off the card, I found that they had slapped some extra on and I still owe just over £70.
I know this is likely to be interest, but how can they justify doing it when the whole balance was paid off in full?

catflea

Interest on credit cards is calculated daily and charged monthly. In the period between your statement being issed and your card being paid off there would have been x number of days accruing interest. This will then be charged to you on the next statement.

Entirely normal, and as long as you pay this lot off in full you shouldn't see any more. Its called trailling interest.

chattychappy

Thanks for doing the honours with this regular question.

A statement is just that, not a bill. It is a statement of your position as at that date. The debt continued to accumulate after it was generated.

Do continue to look out for further statements and notify any address changes. Be sure to cancel any continuous payment authorities with the company concerned (cancelling the card won't usually be enough). Just because you've paid it off doesn't mean there can't be further surprises lurking and these are best nipped in the bud.