just a query? think my mistake but just want to check.

sheba

Hi there peeps,
can I pick your more knowledgeable brains please?

I have an egg money card and as of my 28th February Statement I owed an outstanding balance of 3,195.42 due on the 21st March with a minimum payment of 71.34.

I made 2 payments prior to the 21st March, (both credited to the account on the 18th March) of 3,125 and 11.59, then as expected the minimum payment of 71.34 went out of my current account on (and was credited to my egg account on) the 21st March. These 3 payments total 3207.93 which is over and above the total outstanding amount 'due' on my Feb statement. Further to this my Egg card was credited with my accrued cashback of 145.18 on the 15 March- just an aside but shows I paid plenty more than 'due'.

So my question- why have I still been charged interest of 15.59? I suspect this is because on my previous month I did not clear the whole outstanding amount? If this is the case, should I pay my new statement amount off asap to save more interest? If I again, pay whole total before due date will I still pay interest, or because I 'cleared' it last month will I avoid interest?

To surmise,
Is it correct that I paid interest last month?
I assume yes, therefore
Should I clear my new bill now? or before due date of 18th April to best avoid interest?

Sorry for long post just wanted to pre-empt questions. Thanks in advance for any help/clarity you can give me.

[Deleted User]

Yes - it's trailing interest as you weren't clearing your balance in previous months. If you pay the next one in full before due date, you should be back to zero. Sure someone will correct me if not.

sheba

Thanks for your quick response, so there's no rush to pay today? You think as long as I clear total by due date then no interest will be applied this month? That's what I thought, so unless corrected otherwise I'll just pay total then and if they do charge me interest then it will be a lesson learnt (won't be very much I imagine anyway - far less than the £15 and change of this month I should think?)

Thanks again for your time.

Sheba

[Deleted User]

Yup - worst case is interest on £15.99. So pennies. Shouldn't drive you to eating baked beans for a month.

sheba

Thanking you kindly zx81