When monthly full payment of CC isn't enough

YorkshireBoy

born_again wrote: »

Point to note on this.

If you have a outstanding balance. Any payment prior to statement date will go to the previous balance.
Not the cash transaction.

Depends on provider. Unless I've missed it, OP hasn't said who provides their card.

cymruchris

It happened to me - Was in Asia, and I ran out of cash on my last day there, my current account card wouldn't give me any money (which frustrated me until I remembered I'd set it to 'no transactions' and hadn't removed the lock) - so took out the equivalent of £25 on a credit card - just to see me right until I got back to the airport the next day. Month 1 I saw interest, month 2 less interest, and month 3 even less interest. The fees and charges made me smile - that's the most expensive £25 I've ever withdrawn - but it did what it needed to - which was to get me through a tricky patch whilst in a foreign country - so for that reason I didn't mind paying all the associated fees, charges and interest. The best thing is to keep cash transactions for your debit card if it's at all possible.

Fingerbobs

Apologies for being thick, but I'm still slightly confused as to why there is interest to pay in the third month. I'm assuming they charge interest on the interest?? :huh:

Terry_Towelling

Fingerbobs wrote: »

Apologies for being thick, but I'm still slightly confused as to why there is interest to pay in the third month. I'm assuming they charge interest on the interest?? :huh:

That was my assumption too - see post #5

born_again

Fingerbobs wrote: »

Apologies for being thick, but I'm still slightly confused as to why there is interest to pay in the third month. I'm assuming they charge interest on the interest?? :huh:

Yep.:T

Compound interest