Paying More?

Vasim

Hi All

I'm a bit confused to if I am paying more to what I should?

With Aqua Card I set up DD payment, although for many month's, have been paying before the statement date, and more than the minimum payment. The personal dd amount I set up was £200 each month. The minimum amount has been over this, but like above have always paid it back in time. Tonight I came across the below, which seems to say they will take out more, even if I pay above the amount owed. Is this correct? Should I just let them take out the amount owned from DD each month. The option via the banking app that have been paying by is called, other amounts.

Can I make more than one payment each month?

Yes, you can make as many payments as you like each month. Just make sure that you make at least the minimum payment each month, which is an amount equal to the total of any interest, default charges plus 1% of the balance shown on your statement (minimum £5) by the payment due date on your statement. If your balance is less than £5 then you must repay the full amount. If you pay by Direct Debit, your usual payment will still be taken regardless of any additional payments made. Your payments must have cleared by the due date that appears on the statement.

I'm new to CC. Any info would be great.
Thank You

Vasim

Would like to also like to point out, I,m getting charged interest which is taking away from the card balance, and then also have to pay the minimum amount. Not sure why??

[Deleted User]

They will take the DD in addition to any other payments you make.

If you only want to pay £200, then leave the DD to do its job. However, the more you can pay, assuming it's an interest bearing balance, the better.

The ideal is to clear in full each month.

Vasim

So I'm paying more than what is needed? Best to leave it to the DD option to pay less from my own pocket, each month?

[Deleted User]

You're being charged interest because you're not clearing in full.

Pay as much as you can.

PeacefulWaters

Vasim wrote: »

Would like to also like to point out, I,m getting charged interest which is taking away from the card balance, and then also have to pay the minimum amount. Not sure why??

If you're not paying the full amount owed every month, of course you're going to be charged interest.

Vasim

ok. Will it be cheaper for me to pay the minimum, let them automatically take the money out? It would take longer each month to clear, but less for me to pay each month? The bit from Aqua F&Q page looks like they are taking what I'm paying but more at the same time. Maybe I am wrong.

[Deleted User]

It is cheaper to pay as much as you can, as soon as you can, as long as you are always making at least the minimum payment after the statement is produced and before the due date.

Vasim

OK Thank You

Edi81

It's cheaper now to pay the minimum but over time it's much more expensive.

How much are you spending on the card each month? How much are you paying off?

As the other posters have said you need to pay as much off to minimise the interest. Aqua card is a high rate card so depending on your circumstances you may be better switching to a 0% card.

PeacefulWaters

You have interest.

You have minimum payment.

You have what you choose to pay over and above the minimum payment.

These are all different things. The less you pay, the more it will cost you in interest. The more you pay, the less it will cost you in interest.

Less interest is better than more interest.