credit card 56 days interest free

meer53

YorkshireBoy wrote: »

I agree it seems unusual, but there could be any number of reasons why it suits the OP, ie...

They may be paid weekly, and have difficulty budgetting/saving
They may want to spend more than their credit limit one month, or for several months running
Etc

I just got the impression that the OP seemed to think he would benefit from doing this ?

STANTHEGANDER

hello guys
i would benefit from doing this because im spending the money anyway ,i wouldnt have a minimum payment to pay , and i would be saving the interest too because i wouldnt be paying that either ,so that would give me the minimum payment which i would have been paying £60 plus the interest i would have been paying £60 (£120) to reduce the balance on my card for free!! i am only paying into the card say £100 at a time and hen using that amount up again so that the card issuer cant reduce my credit limit ! i have free anytime calls with bt to 0870 numbers so if my card gets locked after 10 times of use i just phone up for free to unlock it again , with the faster payments the amount i pay in from the rbs bank account shows up in 10 minutes! thought thi might be a good way to pay off the card thats all, i dont have any free cash just to pay off the card and not reuse it , it would have to be a running balance until its paid off , but this way it means it will be interest free until paid off, do you see where i am now? according to whats the cost.com paying off £2500 with an interest rate of 16 percent at £60 month would take 61 months and cost me £1130 in interest, with my idea paying off a balance of £2500 with an interest rate of 0 percent and paying the original monthly payment of £60 plus the interest i am saving of £60 (£120 ) it would only take 21 months to pay off and have no interest to pay and i could just reduce the available credit as i go so i'd be paying it of 3.3 years earlier

YorkshireBoy

STANTHEGANDER wrote: »

i am only paying into the card say £100 at a time and hen using that amount up again so that the card issuer cant reduce my credit limit !

do you see where i am now?

Not really!

The first line above reads like you already have a £2,500 balance, ie debt, on the card, and you're attempting to preserve the credit limit by keeping it maxed out. Please correct me if I'm wrong, but there seems to be a lot of confusion about what you're doing and why!

If that's the case (and you haven't confirmed either way because you didn't answer my question in post #8), then you won't be able to enjoy 56 days on any new purchases made.

STANTHEGANDER

hello yorkshireboy
this is my first month doing it this way , im only preserving the credit limit until i want to reduce it myself if i paid the debt off at the £60 a month at 16 percent it would take me 61 months and it would cost me £1103 in interest, if i paid the debt off even at just the £60 at 0 percent it would only take me 42 months and i would not pay a penny in interest!! i just thought if i then included the monthly interest i would have been paying anyway into my repayment , then on the calculation i would pay it off in 21 months and also not pay a penny in interest either way its a win win situation? i wouldnt pay any more than £100 in at a time because i need to re use the money i am paying in and i couldnt afford the card issuer to use that money to reduce the balance , do you get where im coming from now?

STANTHEGANDER

or instead of reducing the balance on this card use the minimum repayment i would have been paying plus the interest i would have been paying anyway to reduce other debt , so the running balance on this card would stay at £2500 and stay at 0 percent!!
@xbigman "You can't just pay in what you spent that month (+ the minimum)" im paying in before i spend!! i pay in £100 and then 10 minutes later the funds are available for me to spend!! so i dont really have a minimum to pay!! i just thought i could help other people realise a way that they could get long term 0 percent thats all

meer53

Sorry, you've lost me ! You need to get out more.

chopper78

So what you're saying is the balance on your card is £2500, and you're paying in dribs and drabs whilst continuing to spend on the card, and those 'dribs and drabs' total the balance of your last card statement by the due date. Say, for example, £100 a day for 25 days. So yes, it'd be interest free provided the total payments you make between the statement date and the due date are at least the total balance of that statement.

However, you could just put that £100 a day into a savings account (2.8% with the Halifax), and the day before the due date, pay the last statement balance in one lump sum, thus earning a little bit of interest. The way you do it is costing you that little bit of interest.

You aren't getting long term 0% credit at all, your logic has a big flaw in it. The bank wouldn't see it as you paying off what you're spending before you spend it, they see it as paying off the last statement balance.

To summarise: Pay the statement balance in full by the due date, and your transactions incur no interest.

meer53

chopper78 wrote: »

So what you're saying is the balance on your card is £2500, and you're paying in dribs and drabs whilst continuing to spend on the card, and those 'dribs and drabs' total the balance of your last card statement by the due date. Say, for example, £100 a day for 25 days. So yes, it'd be interest free provided the total payments you make between the statement date and the due date are at least the total balance of that statement.

However, you could just put that £100 a day into a savings account (2.8% with the Halifax), and the day before the due date, pay the last statement balance in one lump sum, thus earning a little bit of interest. The way you do it is costing you that little bit of interest.

You aren't getting long term 0% credit at all, your logic has a big flaw in it. The bank wouldn't see it as you paying off what you're spending before you spend it, they see it as paying off the last statement balance.

To summarise: Pay the statement balance in full by the due date, and your transactions incur no interest.

I'm glad it's not just me !

STANTHEGANDER

@chopper
im afraid your missing the point !! i have proven this way works in the past , if i just wanted to reduce the balance , then i would just pay in the £100 a day and not spend , but im spending that as i go ! and still paying 0 percent !!!! if you dont believe me try it for your self!! i only wanted to let other money savers know what i had found out thats all, its easy to do if you have a high burn rate on spending every month, the second months balance would be £2440 and the 3rd months balance would be £2380 ect so i would actually be reducing the debt as a go along and if i liked i could request that the avalaible balance was reduced, providing that im paying off the previous months statment balance by the due date obviously the first month that you do it this way you still have to pay back interest but after that its 0 percent:T

meer53

STANTHEGANDER wrote: »

@chopper
im afraid your missing the point !! i have proven this way works in the past , if i just wanted to reduce the balance , then i would just pay in the £100 a day and not spend , but im spending that as i go ! and still paying 0 percent !!!! if you dont believe me try it for your self!! i only wanted to let other money savers know what i had found out thats all, its easy to do if you have a high burn rate on spending every month, the second months balance would be £2440 and the 3rd months balance would be £2380 ect so i would actually be reducing the debt as a go along and if i liked i could request that the avalaible balance was reduced, providing that im paying off the previous months statment balance by the due date obviously the first month that you do it this way you still have to pay back interest but after that its 0 percent:T

It would still be 0% if you put your money into a savings account and pay off your balance in full at the statement date as Chopper says.