credit card early settlement figure

nosnor123

hi,

im new to credit cards but have one im paying off and id like to pay this off in full however a friend advised that im entitled to an early settlement figure. Ive contacted Barclays who claim this is not the case unless I default the card.

According to my research they do have to offer a figure of the balance minus an interest rebate. After much discussion they maintain this is not the case. I obviously do not wish to pay more than i should. Could someone please inform me of whom is correct in this situation.

andyuk01

They are, you are mixing up a credit card and a loan

Interest is added to a credit card if you don't clear your balance monthly and your 'settlement' figure in this case is your outstanding balance

Next month you'll pay a small amount of trailing interest and assuming you pay off your credit card in full each month thereafter you wont be charged interest except in certain situations (abroad, cash withdrawl etc etc)

[Deleted User]

Easy. You are required to pay back the full balance on the card.

Your friend is mistaken - perhaps he/she is thinking of a loan where the interest for the full term is added to the balance from the outset? With those you are often entitled to claim back future interest but with a credit card the interest is only applied after you have owed the money, not in advance.

A lower full and final settlement 'might' be offered but only after you have defaulted on the debt and they have exhausted all other options. This is to be avoided.

CLAPTON

nosnor123 wrote: »

hi,

im new to credit cards but have one im paying off and id like to pay this off in full however a friend advised that im entitled to an early settlement figure. Ive contacted Barclays who claim this is not the case unless I default the card.

According to my research they do have to offer a figure of the balance minus an interest rebate. After much discussion they maintain this is not the case. I obviously do not wish to pay more than i should. Could someone please inform me of whom is correct in this situation.

if you pay in full there is no interest


if you don't pay in full then interest accrues on a daily basis; there could be no interest 'rebate' as there is nothing to rebate.