Missed CC repayment date - will overpaying mimimize interest?

pb3
pb3 Posts: 162
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edited 17 December 2023 at 10:19AM in Credit cards
Hi all,
Despite payment reminders I've somehow managed to miss the repayment date for my last cc statement. I have a direct debit in place for the mimimum payment and this has kicked in on the due date which was two days ago.
These things happen. My understanding is that I will be hit with an interest charge covering all the transactions on my last statement. In addtion any transactions since the last statement date will also attract interest.. Also i believe from reading previous threads that there is also"trailing interest" though this goes over my head a wee bit  :)
So my question - rather than paying the balance of the statement that i missed - should I make a payment (overpayment)  to cover the total actual account balance - which would include all the transactions since my last statement was generated? This is in the interest (pardon the pun) of minimizing my interest charges.
Any clarification on this would be appreciated. Also should I cease all spending on this card until my next statement?

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  • molerat
    molerat Posts: 31,555
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    edited 17 December 2023 at 11:03AM
    You have interest on all items on that statement up until statement date
    Plus interest on those items until paid off.
    Then interest on new purchases made since the statement.
    So paying off that balance and all new purchases since plus extra for the interest - interest for the statement will be shown as estimated interest on the statement - and a bit more for the current items & trailing interest.  Then when the next statement comes in pay that off immediately.
  • grumbler
    grumbler Posts: 58,629
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    edited 17 December 2023 at 10:55AM
    pb3 said:
    Hi all,
    Despite payment reminders I've somehow managed to miss the repayment date for my last cc statement. I have a direct debit in place for the mimimum payment and this has kicked in on the due date which was two days ago.

    Depending on what 'kicked in' means, this can be their fault not yours. This matters because they are going to charge you late payment fee and a missed/late payment will be recorded in your credit files.

     My understanding is that I will be hit with an interest charge covering all the transactions on my last statement. 
    With a minimum payment  interest is charged on all transactions anyway. It's waived only if the balance is paid in full and on time.

    In addtion any transactions since the last statement date will also attract interest.. Also i believe from reading previous threads that there is also"trailing interest" though this goes over my head a wee bit  :. So my question - rather than paying the balance of the statement that i missed - should I make a payment (overpayment)  to cover the total actual account balance - which would include all the transactions since my last statement was generated? This is in the interest (pardon the pun) of minimizing my interest charges.
    That's what I'd do - pay a little in excess, thus putting the card in credit.

  • Belenus
    Belenus Posts: 2,548
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    edited 17 December 2023 at 12:01PM
    Depending on what 'kicked in' means, this can be their fault not yours. This matters because they are going to charge you late payment fee and a missed/late payment will be recorded in your credit files.

    As I understand it, the minimum payment was taken so there should be no late payments or missed payments fees, just interest charges.

    Perhaps I have misunderstood.
    A man walked into a car showroom.
    He said to the salesman, “My wife would like to talk to you about the Volkswagen Golf in the showroom window.”
    Salesman said, “We haven't got a Volkswagen Golf in the showroom window.”
    The man replied, “You have now mate".
  • pb3
    pb3 Posts: 162
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    Belenus said:
    Depending on what 'kicked in' means, this can be their fault not yours. This matters because they are going to charge you lamete payment fee and a missed/late payment will be recorded in your credit files.

    As I understand it, the minimum payment was taken so there should be no late payments or missed payments fees, just interest charges.

    Perhaps I have misunderstood.

    No you haven't misundertood. My apologies if my terminology misled. The direct debit for the minimum payment was taken, so I will not attract a late payment fee. I mentioned "kicked in" as with this CC provider (Barclaycard) the direct debit seems to be somewhat dynamic in that if I make a payment within a certain date range of the statement date then it is not taken. With some CC providers the direct debit is always taken.

  • pb3
    pb3 Posts: 162
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    molerat said:
    You have interest on all items on that statement up until statement date
    Plus interest on those items until paid off.
    Then interest on new purchases made since the statement.
    So paying off that balance and all new purchases since plus extra for the interest - interest for the statement will be shown as estimated interest on the statement - and a bit more for the current items & trailing interest.  Then when the next statement comes in pay that off immediately.

    Thanks for this. It didn't twigg that I should include extra for the estimated interest and trailing interest. Given your clarification it seems to make sense that I halt any further spending on the card until the next statement?
  • Brie
    Brie Posts: 9,290
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    I'd go online and check what your balance is on the card and pay that amount off.  And not use the card again this month.  Check again in a couple of days in case there are any further transactions.  Throw an extra £5 on it and let them know this is on purpose to minimise interest and that you don't want it returned but used against the balance to be paid in the next couple of months.  That way if they do return it and you get charged too much interest as a result you have a legitimate cause to complain and get the interest reduced.  
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • Is the DD not set to pay off in full each month?
  • grumbler
    grumbler Posts: 58,629
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    edited 18 December 2023 at 2:27PM
    Is the DD not set to pay off in full each month?
    pb3 said:
    ... I have a direct debit in place for the mimimum payment ....
    ....................
  • Baron_Dale
    Baron_Dale Posts: 899
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    edited 18 December 2023 at 2:52PM
    Yes I got that thank you But why not pay it off in full? Unless of course the amount is part of a large debt.
  • grumbler
    grumbler Posts: 58,629
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    Because of greater flexibility. Minimum payment is a must. Full payment is optional - depends on personal circumstances. 
    That said, my DDs are for full payments unless it's a promotional balance.
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