Barclaycard - excessive interest?

MickeyD_2

Hi,

I recently paid Barclaycard on the 11th of this month around 90% of the balance that I owed them, leaving a balance of around £100.

I have since been charged (yesterday) nearly £30 in interest charges.

I may be completely wrong here, but I was on the understanding that interest was only charged on the balance that was outstanding (in this case £100) and not on the balance from the previous statement? I have telephoned Barclaycard and they are telling me otherwise.

I wonder if anyone could possibly clarify this for me?

Many thanks!

grumbler

MickeyD wrote: »

I may be completely wrong here, but I was on the understanding that interest was only charged on the balance that was outstanding (in this case £100) and not on the balance from the previous statement? I have telephoned Barclaycard and they are telling me otherwise.

The interest is calculated daily. If you pay a lump sum at the end of the billing month it will have almost no effect on the interest for this billing month.

Feel free to post more details for a better explanation:balance, APR, billing month, date of the extra payment.

[Deleted User]

Yes, you are completely wrong. Interest is charged on a daily basis. So from you receiving the statement, the whole balance has been incurring interest, not just the £100 you left, until you paid it off. All cards work this way.

InsideInsurance

Interest is calculated daily and so the interest will have been from the date your last statement to the date your payment cleared for the full balance and from that date to the date the new statement was produced on the residual balance.

MickeyD_2

Thanks for your help guys, it's much appreciated!