Halifax Clarity - pay before I spend???

KEM

Thanks chattychappy - they don't make it very clear at all do they?

skybluearmyontour

SuperHan wrote: »

The £3.77 relates to interest on the cash balance.

On the June statement date, they applied interest from the date of the withdrawal to the statement date. You then took a further 26 days to pay this off (which is perfectly acceptable), but interest continued to accrue in this time.

The interest accruing between the statement date and payment date is then on the next statement (known as trailing interest).

If you pay the July statement in full, there will be no further interest to pay (as the interest itself won't accrue additional interest until it's past the payment due date).

Hi SuperHan (& others).

The July statement was cleared in full by DD on 17/08 yet I've now had another interest charge of 4p...! Is that correct?

chattychappy

Actually I disagreed with this bit:

SuperHan wrote: »

If you pay the July statement in full, there will be no further interest to pay (as the interest itself won't accrue additional interest until it's past the payment due date).

Though perhaps some cards operate that way (or perhaps they do for purchase interest).

skybluearmyontour wrote: »

Hi SuperHan (& others).

The July statement was cleared in full by DD on 17/08 yet I've now had another interest charge of 4p...! Is that correct?

It does look like the 4p is interest on the £3.77. So I suppose interest on the 4p will now be running... but will round to nothing.