cc interest going up every month

jackieb

I hope someone here can explain this to me.

I currently have a balance of £2803.98 on a RBOS Visa. I haven't used it in more than a year. I pay it every month online. I was just having a look just now and just realised the interest is increasing every month.

7 Mar 20077 Mar 2007PAYMENTBACS PAYMENT - THANK Y0000£100.00-
16 Mar 200716 Mar 2007CHARGEINTEREST- £6.45
16 Mar 200716 Mar 2007CHARGEINTEREST- £35.79
16 Mar 200716 Mar 2007CHARGEINTEREST- £6.61

5 Apr 20075 Apr 2007PAYMENTBACS PAYMENT - THANK Y0000£100.00-
18 Apr 200718 Apr 2007CHARGEINTEREST- £7.30
18 Apr 200718 Apr 2007CHARGEINTEREST- £7.13
18 Apr 200718 Apr 2007CHARGEINTEREST- £38.70

10 May 200710 May 2007PAYMENTBACS PAYMENT - THANK Y0000£80.00-
18 May 200718 May 2007CHARGEINTEREST- £7.65
18 May 200718 May 2007CHARGEINTEREST- £7.67
18 May 200718 May 2007CHARGEINTEREST- £39.88

12 Jun 200712 Jun 2007DEBITLATE PAYMENT FEE- £12.00
13 Jun 200713 Jun 2007PAYMENTBACS PAYMENT - THANK Y0000£100.00-
13 Jun 200712 Jun 2007CREDIT ADJLATE PAYMENT FEE£12.00-
18 Jun 200718 Jun 2007CHARGEINTEREST- £7.96
18 Jun 200718 Jun 2007CHARGEINTEREST- £40.77
18 Jun 200718 Jun 2007CHARGEINTEREST- £7.94

I phoned and got the £12 fee back. They charged me for being late when I wasn't. But I thought the interest would go down each month, not up. I'm paying as much as I can above the minimum payment. The £6/7 interest charges are for cash withdrawals (I know! pre lb madness). I plan to snowball and get more paid off when I clear my storecard.

emma396

strange!! looks as tho u r paying enough to cover interest, so interest should go down. what is the current interest rate? have u considered transfering balance elsewhere?

jackieb

I need to dig out my paper statement to get the interest rate. I stopped working earlier this year so I don't think transferring would be an option. The minimum payment was £67(March), £66(April), £66(May), and £65(June).

jackieb

I can't understand why i'm paying almost £8 more than what I was 4 months ago, despite having paid £380 to the card. When the Bank of England put up interest rates do the cc companies do too? I haven't had a letter saying they have.

ThankYouAndEnjoy!

Hello

Are you payments made by direct debit?
Have any of your payments been made late recently?

jackieb

No, I just transfer the money online. I also bank with the RBOS and I just transfer it from my bank account to my credit card. I made another payment of £100 last week but this month's interest hasn't been added yet.

I'm not long off the phone. After a while on hold the gent came back and said it was due to the amount of days in a month and how long the interest had been accruing (?). So I suppose the interest is worked out daily and if I pay at the beginning of the statement period I would have less to pay? That would mean paying twice in one month to work that out - KWIM?

He said that I should go to the collections department and tell them I have difficulty meeting the payments (I don't really. I'd like to pay more obviously) to see if they can reduce the interest rate. I'm not sure about phoning the collections department as I don't want it to be on file that i'm having difficulty paying. He said he can see i'm making the payments but only a small amount is coming off of my account each month (he was very nice, said he couldn't lower my rate for me )

He did say the interest rate had gone up to 24% for balance transfers in April! I only took out this card because i'd been into the bank paying another cc over the counter one day and they said that they could do me a % free deal for 9 months if I transferred the balance of my other card.. I'm pretty sure I was told it would be about 15.9% interest once the 9 months was up. I wouldn't have swapped if i'd known it would go up to 24%!