Credit card payment

earwig

Hi if I owe £2000 on a credit card and my mom payment is £60.00 £40.00 of that interest, if I pay a £1000 will that come straight of my debt or will they take part of it for Interest as well like they do with the min payment. Thanks

[Deleted User]

The interest is taken care of by your minimum payment. Overpayments come straight off the capital.

kwame41

You will pay interest on the full balance for the period of the statemented month.


The remainder will come off the balance.

Terry_Towelling

earwig wrote: »

Hi if I owe £2000 on a credit card and my mom payment is £60.00 £40.00 of that interest, if I pay a £1000 will that come straight of my debt or will they take part of it for Interest as well like they do with the min payment. Thanks

In your example, where there is a single balance with a single interest rate, it doesn't matter how they apply the payment.

For example, if you had a debt of £1960 and £40 of interest was added to take you to £2000 and you then paid £60, they could clear the £40 interest and then take £20 off the 'original' debt that you carried forward. That would leave £1940 outstanding. Or they could clear £60 of the £1960 debt taking it down to £1900 and just leave the £40 interest untouched but you'd still have a total debt of £1940 left to pay. Next month, interest would be charged on the £1940 regardless of what it included.

Things can get a bit more complex if different segments of your balance attract different rates of interest but they don't seem to on this occasion.

If this is your very first statement that we're talking about, no interest will be charged for purchases made at all. Interest will only be charged on the balance you carry over to your next statement and that charge will appear on your next statement.