We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
Post Office platinum card

lynnechapman
Posts: 220 Forumite


in Credit cards
Hi, I have a Post Office platinum card with a balance transfer on it which I am paying off at £85 per month. There is £421.00 left to pay (5 more payments).
My question is: Martin says that this is a great card for going abroad and we have just booked a last minute trip to Spain in a couple of weeks time. Should I pay off the card (losing 5 months' interest free) and then use it for our holiday spending or am I better leaving things as they are and using cash?
Thanks
Lynne
My question is: Martin says that this is a great card for going abroad and we have just booked a last minute trip to Spain in a couple of weeks time. Should I pay off the card (losing 5 months' interest free) and then use it for our holiday spending or am I better leaving things as they are and using cash?
Thanks
Lynne
0
Comments
-
I would quickly stick in an application for a Halifax Clarity card. You might just get it in time (mine came quickly). That way you'll get loading free purchases and a good way of getting cash too. (Post Office Plat is expensive for cash.)
Failing that, then yes. If you have the money to pay it off then I would. Don't run yourself so short that you risk a cashflow crisis, though.
As you know, if you don't pay it off in full you'll get purchase interest on your Spanish spend.
It should be enough to pay it off in full when you get back.0 -
lynnechapman wrote: »Hi, I have a Post Office platinum card with a balance transfer on it which I am paying off at £85 per month. There is £421.00 left to pay (5 more payments).
My question is: Martin says that this is a great card for going abroad and we have just booked a last minute trip to Spain in a couple of weeks time. Should I pay off the card (losing 5 months' interest free) and then use it for our holiday spending or am I better leaving things as they are and using cash?0 -
As the balance is small it makes sense to pay it off as even 2-weeks' interest on your spending is likely to overweight the interest you get on £400ish saved.
Quick example.
£500 at 0% for next 5 months. Spend £100 on purchases at 18.9% APR.
Next statement would be £600 + £1.57 interest
OR
clear balance now, then spend £100 on purchases.
Next statement would be £100 + £1.57 interest.
i.e. it makes no difference whether you clear the card now or later, the interest charged would only be on the amount spent.0 -
Yes you are missing something Chris. If the balance is cleared now (and preferably a statement is rec'd confirming that before traveling, but not necessary for all cards), then there will be no interest to pay on the foreign spend - assuming of course that its paid off by the due date on the next statement.0
-
Yes you are missing something Chris. If the balance is cleared now (and preferably a statement is rec'd confirming that before traveling, but not necessary for all cards), then there will be no interest to pay on the foreign spend - assuming of course that its paid off by the due date on the next statement.
If you left the balance on, then when you get the statement you'd see..
£500 balance transfer at 0.0%
£100 purchases spend at 18.9%
Next months estimated interest: £1.57 (on the £100)
If you paid off the £100 , just the purchases, you'd have no interest then.0 -
To have the interest on purchases waived you have to pay the balance in full, not just £100.
Possibly, instead of paying £421ish now, the OP can pay the statement balance in full after coming back from abroad.0 -
To have the interest on purchases waived you have to pay the balance in full, not just £100.
Possibly, instead of paying £421ish now, the OP can pay the statement balance in full after coming back from abroad.
But now statements always show a separate value for each different %, e.g. one of mine is like :
£1000 at 0.0% until April 16
£300 at 0.0% until May 16
£2000 at 0.0% until Jan 17
The card got used for a £25 recurring payment I'd forgotten about (sons magazine subscription), so next month it had a small amount of interest as it was showing a card purchase at 18.9%. But since then the interest has always been £0 again. I certainly didn't clear the balance in full on that one.0 -
Ok I see what I am missing, just read the T&Cs on a few of mine. You have to pay in full to waive the interest on purchases showing on *that months* statement. So you will get interest for one month. (As I did with the £25 payment above I mentioned).
I thought you meant *all* subsequent statements too, but of course on your next statement there won't be any purchases showing anymore as they've been paid off.0 -
Thank you all. I have solved the issue by acting on Martin's information and applied for and been awarded a Halifax card.
Lynne0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.4K Banking & Borrowing
- 252.2K Reduce Debt & Boost Income
- 452.5K Spending & Discounts
- 241K Work, Benefits & Business
- 617.4K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards