Credit card overlimit..

paddyamy2000

Hi there, Ive had a credit store card for a couple of years now, my credit limit was £3000 and it is £1500 cash £1500 credit, I pay my minimum balance every month dd.

And when I have paid two or three months, I have spent again, on this months bill my balance was £2970, my dd comes of on 20th November for £118, and £80 interest comes off 1rst December.

Will I go over my limit if I do not use the card now, as I hardly use it now as my credit is nearly at maximum, but I have noticed in last 6 months, even paying my minimum balance, every month in the last year, my balance seems to have increased rather than decrease, the Apr is 39.9%

I have cash interest of £39 monthly and credit interest of £39, but from hardly using the card in the last 12 months, my balance has creeped up from £2500 minus to nearly the maximum 3k

Regards

bhusisho

paddyamy2000 wrote: »

Will I go over my limit if I do not use the card now, as I hardly use it now as my credit is nearly at maximum, Regards

I also have the same question

SnowTiger

paddyamy2000 wrote: »

I have spent again, on this months bill my balance was £2970, my dd comes of on 20th November for £118, and £80 interest comes off 1rst December.

Will I go over my limit if I do not use the card now, as I hardly use it now as my credit is nearly at maximum, but I have noticed in last 6 months, even paying my minimum balance, every month in the last year, my balance seems to have increased rather than decrease, the Apr is 39.9%

This shouldn't push you over the card's limit.

The payment you make on 20th November will be applied to the card before the interest.

So, the new balance next month should be £2,932.

With some older credit card agreements, the minimum payment isn't always enough to cover the interest. Typically you will be paying off, maybe, 3% of the balance.

With newer agreements you pay interest plus 3% of the balance.

It's worth noting that the interest that appears on your statement is for the previous month, not the coming month. So, the £80 that you expect to appear on next month's statement will be for this month, not the coming month.

Usually, you should avoid spending on a card that isn't paid off in full every month because you have no interest free period and pay interest on all purchases from the day they're made.

Stop spending on the card and throw as much money at it as you can. Got a spare fiver? Pay it off your card. Even small payments can make a big difference, getting that balance paid off quicker.

paddyamy2000

Thanks for the help