public holiday charge?..

nickyotron

I'm currently paying £4 a day to my credit card in an aim to constantly pay it down, instead of just waiting for the direct debit each month to do it for me. My idea is that im paying less an less interest each month..( is it a good idea..?) anyway..

Now, with the long bank holiday gone, obviously the daily £4's are a little slower coming an going between accounts. But, it occurred to me over these public holidays im still paying interest on my balance, and cant pay it down till a few days after each public holiday..

So, is it really fair WE have to pay interest on these days (even xmas lol) while we can't pay down our balance.:mad:
I know we also earn interest on public holidays, but hey not everyone is earning as much interest as were running up..

leicsmarkyr

Yes it is fair; you borrowed the money in the first place.

What you could do in these circumstances is pay in advance, so say you are paying £4 a day and there are going to be 2 days of Public Holidays, pay £8 a day or so before the Public Holiday. And then restart £4 afterwards. In fact you would save money then as your balance would be £8 reduced for a few days

trikidy

It's a bit hard to try and question what is fair when you have borrowed a companies money and not paid it back yet, is that fair?
Just pay more of before the bank holiday- simples!
Also I'm not sure, but I thought interest was charged monthly, so it depends on how much you owe on the xth date of the month, so if you have a DD to pay off before that date, you will pay the same interest as doing £4 a day- I'm not sure though!

dzug1

Is it really worth the effort of making all this fuss over less than 1p a day?

nickyotron

dzug1 wrote: »

Is it really worth the effort of making all this fuss over less than 1p a day?

To me its absolutely worth it
£4 daily (roughly £120) plus the minimum monthly DD is hammering the balance down each statement, over the few months ive done this.:T
I figured what's £4 a day, a sandwich, or pasty & coke,some cigs, bus fare?..

CLAPTON

nickyotron wrote: »

To me its absolutely worth it
£4 daily (roughly £120) plus the minimum monthly DD is hammering the balance down each statement, over the few months ive done this.:T
I figured what's £4 a day, a sandwich, or pasty & coke,some cigs, bus fare?..

if it works for you then it works for you

but unless you get paid daily you would save more by paying earlier rather than waiting to pay daily
so paying as early as possible instead of waiting would save you as much as 10-20 pence per month

JimmyTheWig

trikidy wrote: »

Also I'm not sure, but I thought interest was charged monthly, so it depends on how much you owe on the xth date of the month, so if you have a DD to pay off before that date, you will pay the same interest as doing £4 a day- I'm not sure though!

This is not true.
Interest is added to the account monthly, but it is calculated daily.


I agree with Clapton that the best thing, pure money-wise, would be to pay what you can afford as soon as you can. But if the incentive is there for you to pay it daily then that is more important than the pennies of interest you'd save by doing it this way.

As to the bank holidays, I agree with leicsmarkyr - would have been better to pay it off the day before rather than the day after.