Credit card interest

Glevum

I took out a 36 month 0% interest money transfer credit card from virgin money. I then made a purchase which I knew attracted interest so I paid off the purchase balance but I am still paying interest. I have spoken to virgin who said I will continue to pay interest until the entire balance is paid off. I understood that any payment I made would be first applied to the balance that is attracting the highest amount of interest ie the purchase I made. Can somebody advise. Thank you.

Willing2Learn

I'm confused. Have you made a purchase and then made a money transfer? Or is it just the purchase on it's own which you then tried to pay off in one go? Please be clearer

Edit: Wow - first post after 10 years. Hello:hello:

Glevum

Hi. I received the money transfer a year ago and made the purchase in July this year which I paid off in July and August.

[Deleted User]

Did you make the minimum payment for the money transfer as well?

Glevum

No I have consistently paid over the minimum.

Willing2Learn

When you repaid Virgin the full amount for the purchase, did you also pay the minimum required contractual payment on the same month for the money transfer portion of the debt?

molerat

If you paid off the balance over 2 months, July and August, there may be trailing interest in September. How much interest is being charged ? Did you pay at least the minimum payment as shown on the statement ?

[Deleted User]

As above, it sounds as if you only have one more month where interest will be charged.

molerat

Willing2Learn wrote: »

When you repaid Virgin the full amount for the purchase, did you also pay the minimum required contractual payment on the same month for the money transfer portion of the debt?

Why would that matter ? As long as the minimum payment is made as per the statement it does not have to set anything against the balance transfer amount. Spending the amount of the minimum payment is a trick to maintain a stooze pot, the following payment pays off the spend and leaves the stooze intact.

Glevum

The purchase was for £560 on 19 Jun 18. I paid off £210 on 29 June, then £285 in July which also covered the minimum payment of £25. On 5 August I paid £85, the minimum payment that month was £40. Later in Aug I paid a total of £165 but my September statement is showing an outstanding purchase amount of £334 at 19.7% annual interest.

[Deleted User]

Had you received a statement showing the purchase on it BEFORE you made the payment on 29 June?

If not, that payment will have gone to the BT.