Avoiding credit card interest

Older_But_Not_Wiser

I am embarrassed not to know the answer to this, and after a bit of research which confused me with talk of interest calculation cycles, it is still not clear to me, so thought I'd ask you all as I'm sure you'll know. Sorry for being a bit thick

If I pay the full statement amount this month, do I avoid paying any interest, even if the statement amount is a lot lower than the actual current amount? This months (as at 4 April) full statement amount was £163 to be paid by 29 April, but just after the statement was produced I spent another £1.5k

To avoid any interest charges next month do I need to pay just £163 this month and the remaining full amount when the next statement arrives or should I pay the whole amount this month?

Again, apologies for what is almost certainly a daft question

YorkshireBoy

Older_But_Not_Wiser wrote: »

If I pay the full statement amount this month, do I avoid paying any interest, even if the statement amount is a lot lower than the actual current amount?

Yes, providing you paid the last statement in full and you've no cash transactions on there.

To avoid any interest charges next month do I need to pay just £163 this month and the remaining full amount when the next statement arrives...

Yes, subject to the above criteria being met.

Older_But_Not_Wiser

Thanks Yorkshire Boy, v pleased that the money can stay in my interest-earning current account for a little bit longer!

CLAPTON

just to be clear, you need to pay two consecutive statements in full to have no interest (excepting cash withdrawal/foreign spending etc)

Older_But_Not_Wiser

Thanks CLAPTON, I will be paying the full statement amount each month (have set up a direct debit to make sure it happens and on time) and don't use the card for cash advances/overseas spending.

grumbler

CLAPTON wrote: »

(excepting cash withdrawal/foreign spending etc)

What's wrong with foreign spending?
It's no different from UK spending except possible charges for currency conversion.

Older_But_Not_Wiser

I was due to make my payment today by direct debit and as I am a worrywart about these things I had telephoned customer services the same day I posted here to check that the direct debit was set up in time to pay the full statement amount. The call centre assistant confirmed that it was. So, I was surprised to see that they have actually taken £15 LESS than the statement amount today for no reason at all that I can see. I emailed them at 9.30am (couldn't call as have been in public meetings all day) but have had no reply. As I really don't want to end up paying interest I have just made an online payment of the remaining £15 now but I don't know if it will arrive in time. Did I do something wrong here or was it the credit card company?

Vortigern

Older_But_Not_Wiser wrote: »

I was surprised to see that they have actually taken £15 LESS than the statement amount

Have you had a £15 refund to your card since the statement date?

Older_But_Not_Wiser

Vortigern wrote: »

Have you had a £15 refund to your card since the statement date?

Yes but it was a refund of a purchase made after the statement date, so shouldn't have altered the amount I owed as at that statement?

I should also add that the online account is now showing that next months payment will be £15 which is obviously not correct as I owe them the c£1.5k that I had already mentioned.

grumbler

Older_But_Not_Wiser wrote: »

Yes but it was a refund of a purchase made after the statement date, so shouldn't have altered the amount I owed as at that statement?

It counted as a payment after the statement and altered the DD amount.

It's worth saying that it doesn't work the same way in all CC companies.

Older_But_Not_Wiser

grumbler wrote: »

It counted as a payment after the statement and altered the DD amount.

It's worth saying that it doesn't work the same way in all CC companies.

Thank you, that's reassuring. Any idea why they would be showing next months payment as £15.00 when I actually owe them (and want to pay them) c£1.5k? Is it to do with when the charges were incurred?

Sorry to bug you with all these questions. I'm beginning to think I should just stick to my good old debit card as I don't think I'm cut out for this credit stuff!