Help with trailing interest

Gustavo_F

Hi, can somebody please give me some help on how trailing interest is calculated?

I cleared my credit card balance last week and got a new statement today showing a few pounds trailing interest (which I was expecting). I now intend to carry on using this card and then to clear it in full each month. I've also just amended my direct debit to take the full amount each month.

My question though is how do I stop this trailing interest from appearing on future statements? Will the full amount direct debit be sufficient or do I need to first clear this trailing interest before spending further on the card? Or overpay this month to clear any more interest? Very confused!

Thanks

Mr_Goodkat

If you pay the full statement amount for two consecutive months then this will clear the trailing interest.


As long as you continue to pay the full statement balance in month you will not be charged interest.


The above are only true if you do not take any cash advances as usually there is a transaction fee and interest charges from the date of withdrawal.

bengal-stripe

Gustavo_F wrote: »

My question though is how do I stop this trailing interest from appearing on future statements? Will the full amount direct debit be sufficient or do I need to first clear this trailing interest before spending further on the card?

Once it has been paid, the trailing interest has gone. Just pay the next statement in full and on time (and continue doing that), then no further interest will be due.

Gustavo_F

Thanks for the replies, I don't intend to use this card for cash and the direct debit should take future payments in full and on time so that should be the end of interest

InsideInsurance

Trailing interest is the interest between the date the statement was produced and the date the payment was credited. Similar to purchases, interest charges doesnt start accruing interest until after its been through a complete billing cycle and so hence you clear the balance two months in a row you've then cleared

If you've changed the DD to settle in full and already cleared last month in full then the problem is solved and interest will be stopped after the next DD payment