Issues closing down and paying off credit card as interest keeps being applied...

Lucy-Jayne

Apologies if this has been covered before.

I have recently paid lump sums off of two credit cards (HBOS and Barclaycard) as I wanted to pay them off and close them down.

Unlike other credit cards, they have both told me that they are unable to provide me with a repayment figure that includes 'trailing interest' so I can just pay and close down.

On the Barclaycard, I paid the extra, called to close and was told that all would be sorted out. Two days later I received a credit for the amount that I overpaid. When I called them today, after nearly an hour on the phone, when I was finally put through to someone who could understand, I was told that they don't hold credit balances on closed accounts and I would have to keep paying off my balance in full every month.

The HBOS, I did not overpay, I paid the balance outstanding and when I called to close was told I would have to keep paying the balance like the Barclaycard.

Am I right in thinking that once that interest is charged and a statement generated, I will then be charged interest on that which will then get charged the following month? And then again the next month on that interest?

Surely this will take me months and months to pay off and close down my account as interest will keep getting charged? Am I missing something or should this be easier?

Thanks

pvt

L-J,

I believe it works as follows:

- You pay off the full balance one month;
- Then you will get a small bill mext month for interest on any part of the previous balance that was due interest between the statement date and when you paid it;
- You pay that interest and the matter is closed.

They don't subsequently charge you interest on the interest, because you paid it in full before the next statement date.

pvt