How to avoid interest?

paul1672

Looking for some clarification please guys and gals...
Scenario is:
I have an mbna card which had a zero balance last statement and was paid in full the statement the month before that and advised me my next months estimated interest would be zero. It offers up to 50 days interest free for purchases if balance is paid in full.
I have used it the last two weeks for general purchases while on holiday.
The next statement is due to be produced on sept 6th and the payment due date will be on 26th sept and I was wondering if I will be charged interest on the purchases on 6th sept or if I paid the balance off in full on or before 26th sept will the interest be scrapped? Or could I just pay the minimum on 26th sept and then clear the balance before the following statement is created on 6th October?
Also, if I was to pay the balance off before the next statement is produced would I then be able to use the card again and get a further 50 days interest free on the new purchases or would it still charge interest because it has a balance outstanding even though it was cleared before using again?
Sorry for long post but tried to be thorough in my explanation.
Many thanks for any advice given
Paul

YorkshireBoy

Everything on your 6th Sept statement needs to be paid by 26th Sept to avoid interest on the 6th Oct statement.

Since statements are generally closed off at the end of the working day you'd be better waiting until 7th Sept for anything you want 56 days interest free on, ie to be repaid 26th Oct.

NB: I'm assuming all transactions are purchases, ie no cash type transactions.

pvt

You'll only pay interest if you do not pay your next statement balance in full by the due date for that statement. So as long as you pay it all by 26th Sept, they will not incur any interest.

Many people use credit cards extensively and always pay the statement balance in full and never pay a penny in interest.

CLAPTON

the rule is basically that if you pay by the 'pay by date' the FULL amount each and every month then you pay no interest (assuming no cash or near cash withdrawals).


so in your case if you pay the balance on your 6th September statement by the pay date of 26th in FULL then no interest is charged.

if you pay the minimum then interest will be charged the following month.

there is no reason to pay anything before the statement arrives.

paul1672

YorkshireBoy wrote: »

Everything on your 6th Sept statement needs to be paid by 26th Sept to avoid interest on the 6th Oct statement.

Since statements are generally closed off at the end of the working day you'd be better waiting until 7th Sept for anything you want 56 days interest free on, ie to be repaid 26th Oct.

NB: I'm assuming all transactions are purchases, ie no cash type transactions.

Thanks for the reply and yes, all transactions are purchases

So, if I understand it correctly, if I paid the full amount outstanding on the 6th sept statement on say 8th sept and then made new purchases on say 20th sept I won't pay any interest on the 6th oct statement and I'd then obviously have to pay the new purchases off before 26th oct....
By my reckoning that's correct?

Paul

CLAPTON

paul1672 wrote: »

Thanks for the reply and yes, all transactions are purchases

So, if I understand it correctly, if I paid the full amount outstanding on the 6th sept statement on say 8th sept and then made new purchases on say 20th sept I won't pay any interest on the 6th oct statement and I'd then obviously have to pay the new purchases off before 26th oct....
By my reckoning that's correct?

Paul

yes that is correct

but it's equally true that as long as you pay the balance on your 6th sept statement by 26th you wouldn't pay any interest in oct either.