Credit card charges

Mr_Pablo

Hi everyone!

I foolishly took out a credit card with Halifax a few months back with the credit limit to the value of £500.00. I took the card out as I seriously injured my knee and had to go down to reduced hours in work.

I ran up charges on the card and now owe £594.00. I'm going to pay the full balance tomorrow but just wanted to ask if I pay the full balance in cash will there be a possibility of the charges being dropped? I know you might say just ring up and ask but wanted to hear other people's experiences when paying back credit cards with charges on and where I stand.

Thanks, Paul.

PS. The card has been cut up, burned and the whole experience has been a nasty life lesson!

bigadaj

Depends what you mean by charges. Interest is always accrued at the applicable rate when you don't pay off the balance in full. This is potentially something you need to check now, as you will incur interest for one month after making full payment, so you might need to make a further payment to close it out.

If you don't make the minimum payment then you incur charges, also if you pay late or exceed the credit limit, these fees can be waived by the provider if you ask though they may not agree.

If used properly credit cards are very useful, they provide protection on purchases by section 75 or chargeback, and if you pay in full you get interest free purchases for up to six weeks, you probably just need to do some research on how they work.

They are also very valuable in building up a good credit card which is valuable if you want to apply for a mortgage at any point, but only if used correctly.

Mr_Pablo

Thanks for the reply bigadaj, it was most helpful. The £594.00 is the total amount owed. The interest has been frozen on it. I just neglected to ask the customer service representative whether the £94.00 of charges accrued in the past could be cleared but I will do so tomorrow.

Thanks again for the advice!

Caz3121

what were the charges for? how much did you spend on the card? do you have late payments?

jonesMUFCforever

If you pay £594 tomorrow you will have almost repaid the whole balance.
There will be trailing interest of a few quid to go.
You IMO stand little chance of getting interest waived - you might get other charges refunded depending on who and how you speak to them.

chattychappy

Since interest is frozen, you might find that having paid off the balance they will reduce the limit to zero not allow further spending. I would only pay off the full balance if you are certain you have the cashflow to pay for essentials.