Halifax Clarity - Holiday Question

chattychappy

lisyloo wrote: »

This is rubbish I'm afraid.
You will get charged interest on cash from the day you withdraw to the day you pay it back.
Statements are merely a monthly way of informing you.

Not sure how Clarity works, but this is good advice in the case of Zero. The reason is this: payments are applied to statemented balances (within this highest interest balances before lowest interest balances) before unstatemented balances.

So, by withdrawing just before a statement date and paying just afterwards, you only get a few days interest - even if you have other transactions on the card. If you'd paid before the statement date, then the payment would go to any purchases that have appeared on your last statement.

The only other way to avoid this problem if you wish to mix transactions is to pay off the ENTIRE balance every time you make a cash withdrawal.

Clarity might be different - but I'm pretty sure I remember a thread from someone who had encountered this issue.

lisyloo

Ok, I have reworded my remarks to a more appropriate tone.
I understand what was intended now it's explained that we are possibly talking in the context of purchases and part-payment.

knightstyle

Thanks, Chattychappy, I hadn't realized that. We still have some cash in our French bank account, we transferred some of money from a 0% credit card to Nationwide and drew it out from a French cash machine just before they introduced charges, not sure how MSE that was as we only get 0.7% interest but it is now down to just a few hundred Euros.