Interest on not quite paying off the full balance

AP123_2

Hi there,

I have a tesco clubcard credit card which I use for day to day spending and usually pay off in full.

Last month the balance was £2064.85, I paid off £2050 in time but unaware I was slightly short of the full amount. Now I have been charged £39.56 in interest. Does this mean that even though I was only £14.85 short I get charged interest on the entire £2k and not the remaining amount brought over?

Many thanks.

CLAPTON

as the T&Cs will tell you you are charged interest from the day of purchase to the day you pay the debt off.
however if you pay in full, each and every month the interest isn't charged

you will be charged a little more interest next month too.

chattychappy

Yep, it hits you hard in these circumstances.

If you find yourself in a position where you can almost pay, but not quite... then it can actually be worth getting a cash advance to cover the shortfall. Though on most accounts this entails a fee and interest from the date of withdrawal (regardless of whether you pay the statement in full), this is, of course, just on the shortfall so can work out less overall.

Alternatively, if you know you are not going to be able to pay off the full balance, then it is worth paying off as much as you can as soon as you can - don't wait for the payment due date, as every day counts. This is where DDs can let you down. By having to keep the monies in your current account awaiting DD day, you are accumulating more interest on your CC. (In some cases, a manual payment might stop a DD, but you have to check carefully what happens with your particular card.)

prowla

AP123 wrote: »

Hi there,

I have a tesco clubcard credit card which I use for day to day spending and usually pay off in full.

Last month the balance was £2064.85, I paid off £2050 in time but unaware I was slightly short of the full amount. Now I have been charged £39.56 in interest. Does this mean that even though I was only £14.85 short I get charged interest on the entire £2k and not the remaining amount brought over?

Many thanks.

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