Would you spend? To reduce debt?

[Deleted User]

This was my plan

Available credit £500.00

Use the cc to pay my bill of £390.00
I then get this 30 days interest free?

Pay £390 directly to the cc account and this will be paid of the old balance with the highest interest.

This gives me £390 for 30 days without interest right?

lamarsi

:eek: this has totally frazzled my brain I thought I understood then I didn't.. are you talking about 'front loading' your card?

lamarsi

ah yes I think it would, but like previous poster says they may reduce your balance available

backinbusiness

I want to reiterate OP. You could pay £500 towards your credit card debt with the intention of spending £500 on bills that month.

If the CC company then reduce your limit by £500 (which can and does happen, especially if they get a sniff of problems), then what would you do?

Please be careful.

BiB

immoral_angeluk

Why not look at the bank account which gives you cashback for household bills? Can't remember which one it was but I know Martin mentioned it recently in one of his emails.

jon1965

I think that is the santander 321 (or123) current account but there is a monthly fee (I think)

redpete

assj wrote: »

This was my plan

Available credit £500.00

Use the cc to pay my bill of £390.00
I then get this 30 days interest free?

Only if you have paid in full the balance on the two previous statements. If you have not paid the previous two statement balances in full by the payment due date then you incur interest as soon as the transaction appears on the card..

Pay £390 directly to the cc account and this will be paid of the old balance with the highest interest.

This gives me £390 for 30 days without interest right?

If the conditions above are true, then yes.

[Deleted User]

redpete wrote: »

Only if you have paid in full the balance on the two previous statements. If you have not paid the previous two statement balances in full by the payment due date then you incur interest as soon as the transaction appears on the card..


If the conditions above are true, then yes.

I don't understand the first part, why do I have to pay previous two balances in full.

If my purchases only incur interest after 30 days, surely I will then only pay interest after the 30 days as passed, but I will have 30 days more money paid off my account in the meantime?

Some people have agreed and some have not and now I don't know who to go to...

JimmyTheWig

assj wrote: »

I don't know why, but I thought that everything I spent was subject to 30 ish days interest free. So I was going to pay the card and then spent it again with the hope of getting 30 days interest free on the amount spent.

Now I am confused, but I thought I knew what I was saying at the start...

This is what we thought you were saying.
It is different to what I suggested in my last post.
Everyone - the OP has made no mention of front-loading their payments.

assj wrote: »

This was my plan

Available credit £500.00

Use the cc to pay my bill of £390.00
I then get this 30 days interest free?

Pay £390 directly to the cc account and this will be paid of the old balance with the highest interest.

This gives me £390 for 30 days without interest right?

As has been said, this would only be interest free if you pay off your balance in full every month.

assj wrote: »

I don't understand the first part, why do I have to pay previous two balances in full.

If my purchases only incur interest after 30 days, surely I will then only pay interest after the 30 days as passed, but I will have 30 days more money paid off my account in the meantime?

Purchases are not interest free for 30 days. You get interest-free credit _if_ you pay your bill in full, on time every month.
If you've had an ongoing balance on your card then the first time you pay your bill off in full you will still get interest on your next bill up to the date when you cleared the last bill.
That's why you need to clear it two months in a row to stop getting interest charges.

Some people have agreed and some have not and now I don't know who to go to...

I believe that those who have agreed have done so on the basis that you have a card with zero balance.

If you've got a few cards all with balances on them, it is always best to pay off the card with the highest interest rate first, whilst paying just the minimum onthe others.
Once you've cleared that card then you could go with your plan as long as you pay this card off in full each month.

redpete

assj wrote: »

I don't understand the first part, why do I have to pay previous two balances in full.

If my purchases only incur interest after 30 days, surely I will then only pay interest after the 30 days as passed, but I will have 30 days more money paid off my account in the meantime?

Some people have agreed and some have not and now I don't know who to go to...

The interest-free period only applies if you pay off your balance in full every month - that's the rule applied by all (or at least all that I'm aware of) credit card lenders.

Also it will be presented as "up to 30 days" (or however many days it is), the actual period depends on how soon before the statement date the transaction appears on the statement. So, for example, your payment date might always be 14 days after the statement date; if you buy something that appears on the statement on the last day on the statement then you will get 14 days interest free, if you spend on the frst day of the statement you might get 14+30 days interest free.

Transaction on 14th April appears on statement dated 14th April has to be paid 28th April = 14 days.
Transaction on 15th March appears on statement dated 14th April has to be paid 28th April = 45 days.

But as mentioned above, if you haven't cleared your balance then interest free period = 0 days.

Some people have agreed and some have not and now I don't know who to go to...

That's because some people are wrong and/or have misunderstood what you are trying to do.