Can someone help dumb this down (even more) for someone who's trying to learn credit card basics...

Jj13

Hi!

So for the past few years, I've made tried to make the effort to learn about credit cards and how they work, but for the life of me, my brain just can't grasp even the most basic of information in relation to how they work, when to use them, when I should pay off a credit card etc. etc.
I don't know why I'm struggling to learn... I think it's partially that I'm being too cautious and just really don't want to get caught out and then end up paying loads of money.
So, today, I thought about purchasing an item that costs £80. Now, I do have the funds to cover that cost, but ideally, it would be better if I were to be able to pay the cost in monthly instalments is this where I can use a credit card?
This is what my card terms say:
"There is 0% interest payable on Transactions made under this Agreement if repaid by the Due Date shown on your Monthly Statement, or by any Extended Due Date.

Interest on Monthly Payment Plans will be charged at 27.9% per year.

In addition, you may have to pay other charges depending on how you manage this Agreement (see Sections 3 and 6 of this Agreement).

Total Amount Payable

The amount payable will be shown on your Monthly Statement and will depend on your use of the

Card. For example, if you immediately make a Transaction or Transactions totalling £800, these will

be added to your Monthly Statement and you will be required to repay £800 on the next Due Date.

This assumes that you do not break this Agreement in any way, that you do not elect to Extend Due

Date on a Transaction, or apply to Convert any Transaction or Transactions to Monthly Payment

5

Plans. If one or more of those things should happen, then you will be required to pay more than

£800.

Paying in full on your next payment date is interest free (0% APR).

However, if you make a successful Conversion application for any Transaction or Transactions it's

27.9% APR for whichever Monthly Payment Plan you choose. If you miss a payment you will be

charged a late fee (see section 3, "Card features and fees")." 

So does this mean, if I were to purchase the item using the credit card, I would have to pay the £80 back by the following month otherwise (the remaining balance) would charged 27.9%?

I'm obviously not going to be using a credit card until I fully grasp how to use them properly, so any help would be much appreciated by myself and my lump of a brain.

Thanks in advance!

Uriziel

Yes what you are saying is correct. You can buy the item this month. Next month they give you a statement with the cost of the item showing and a date by which you need to have paid which usually will be end of that month and if you pay it until then you do not pay any fees.

You wrote in the beginning you want to pay in instalments. That does not work with credit cards unless you take out a 0% credit card which means that for an X amount of months you do not have to repay except the "minimum payment" which they tell you. For example you can make a purchase of a £100. Your card is 0% for 24 months. The credit card company will tell you to make the minimum payment of £5 a month which you will have to do. If you fail to do this they will revoke the perk and start coming after you for the full debt.

There are some people that take out a 0% card for the sole reason of making a big purchase and paying it in installments.

Caz3121

Some cards come with an initial x months at 0% which will allow you to make a purchase and spread the cost over the length of the offer without incurring any interest
https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

If you do not have a card with an offer you would pay interest from the date of the purchase until paid in full unless you paid your full statement balance off when due