Credit Card snowballing?

magikpurple

Hi,

Wonder if someone could help, we have a credit card and although pay the regular minimum payment we overpay differing amount depending on the month.

Does anyone know what the best time to throw some extra money at the card is?

I don't want to be doing it wrong if you see what I mean

Thanks will check back later

Fruit_and_Nut_Case

magikpurple wrote: »

Does anyone know what the best time to throw some extra money at the card is?

As interest is calculated daily, you should "throw" as soon as you can. With the proviso that you make sure that you always pay at least the minimum each month.

magikpurple

Fruit_and_Nut_Case wrote: »

As interest is calculated daily, you should "throw" as soon as you can. With the proviso that you make sure that you always pay at least the minimum each month.

Ah ok, have thanked you.

Thanks for the response

thenudeone

It would be worth checking that you are actually overpaying.

If you pay early enough after the statement is produced, some card issuers will reduce the direct debit by the same amount, meaning that it total you have still only paid the minimum (although the sooner you pay the less interest you will be charged). Others will always take the direct debit regardless of any other payments.

The statement should explain which applies to your card.

magikpurple

thenudeone wrote: »

It would be worth checking that you are actually overpaying.

If you pay early enough after the statement is produced, some card issuers will reduce the direct debit by the same amount, meaning that it total you have still only paid the minimum (although the sooner you pay the less interest you will be charged). Others will always take the direct debit regardless of any other payments.

The statement should explain which applies to your card.

Ah no we made sure we did not fall into the direct debit trap and pay the minimum (at least) when we get the bill then pay odd bits here and there but would like to pay bigger sums hence the snowballing if that makes sense.

Thanks for your response