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    • dazzaofdagenham
    • By dazzaofdagenham 12th Apr 18, 8:53 AM
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    dazzaofdagenham
    Interest on card...not expected
    • #1
    • 12th Apr 18, 8:53 AM
    Interest on card...not expected 12th Apr 18 at 8:53 AM
    Hi all...trying to understand the concept of Ďtrailing interest, as described by person phone.

    Statement 1.....starting balance zero.....end of statement £150.01
    Stateemtn 2 ....paid 175 over several payments.....new spending 350
    Statement 3 ....this contains interest....what I am questioning...
    Statement 1 had a balance of 150.01.....did I not pay that off with the 175 ?

    Very confused
Page 1
    • PeacefulWaters
    • By PeacefulWaters 12th Apr 18, 9:01 AM
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    PeacefulWaters
    • #2
    • 12th Apr 18, 9:01 AM
    • #2
    • 12th Apr 18, 9:01 AM
    Did you pay at least £150.01 before the due date?

    Are there any cash, currency or gambling transactions?
    • dazzaofdagenham
    • By dazzaofdagenham 12th Apr 18, 9:10 AM
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    dazzaofdagenham
    • #3
    • 12th Apr 18, 9:10 AM
    • #3
    • 12th Apr 18, 9:10 AM
    Yup all paid before date on statement..

    Only spending was petrol...amazon....and food shopping
    • molerat
    • By molerat 12th Apr 18, 9:14 AM
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    molerat
    • #4
    • 12th Apr 18, 9:14 AM
    • #4
    • 12th Apr 18, 9:14 AM
    Is it actual itemised interest or "estimated interest on next statement" ?
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    • dazzaofdagenham
    • By dazzaofdagenham 12th Apr 18, 9:38 AM
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    dazzaofdagenham
    • #5
    • 12th Apr 18, 9:38 AM
    • #5
    • 12th Apr 18, 9:38 AM
    Nope, interest on statement a day or so ago..

    The person on the phone says ( as best I can understand ) as I hadn!!!8217;t cleared the 150.01 before the new spending started...then the interest was due..
    • PeacefulWaters
    • By PeacefulWaters 12th Apr 18, 10:01 AM
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    PeacefulWaters
    • #6
    • 12th Apr 18, 10:01 AM
    • #6
    • 12th Apr 18, 10:01 AM
    Yup all paid before date on statement..

    Only spending was petrol...amazon....and food shopping
    Originally posted by dazzaofdagenham
    Did you pay some of the £150.01 before the statement for that amount was issued? If so, have you paid less than £150.01 between the two statements?

    That's my best guess. If it is the case, you've been correctly charged interest.
    • dazzaofdagenham
    • By dazzaofdagenham 12th Apr 18, 10:10 AM
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    dazzaofdagenham
    • #7
    • 12th Apr 18, 10:10 AM
    • #7
    • 12th Apr 18, 10:10 AM
    Sorry....donít quite get that.

    At the end of the statement I owed 150.01......but before the min payment date I had paid more than the amount owed....150.01......but there was also additional spending gone on.

    The amoun5 I paid was 175.....but over several payments...

    Hoping that makes sense
    • PeacefulWaters
    • By PeacefulWaters 12th Apr 18, 10:16 AM
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    PeacefulWaters
    • #8
    • 12th Apr 18, 10:16 AM
    • #8
    • 12th Apr 18, 10:16 AM
    Without seeing the two statements and the dates payments have been received I'm struggling.

    But I don't recommend that you post them here.

    I do recommend simplifying how you use your credit card though. One payment a month, full amount, after statement is issued and before the due date.
    • Superscrooge
    • By Superscrooge 12th Apr 18, 10:45 AM
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    Superscrooge
    • #9
    • 12th Apr 18, 10:45 AM
    • #9
    • 12th Apr 18, 10:45 AM
    The most likely explanation is that you didn't make payments of £150.01 between the statement being produced and the payment due date. You only get the interest free period if you clear your balance in full.

    It's difficult to be certain without seeing your statement and the dates the payments were credited to your account.

    eg. If £75 of your £175 payments was made before your statement showing the balance of £150.01 was generated. Then you won't have cleared your balance in full if you only paid an additional £100

    Easiest solution is to set up a DD to pay the full amount each month
    • RG2015
    • By RG2015 12th Apr 18, 10:47 AM
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    RG2015
    The reason @PeacefulWaters mentioned cash withdrawals, currency and gambling is that they incur interest immediately.

    Also, are you sure that your payments reached the credit card company by the due date. The Easter holidays may have delayed your payments.
    • redpete
    • By redpete 12th Apr 18, 1:44 PM
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    redpete
    what was the balance on the statement before the £150.01, and did you pay that off in full before the deadline?
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • dazzaofdagenham
    • By dazzaofdagenham 12th Apr 18, 6:23 PM
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    dazzaofdagenham
    what was the balance on the statement before the £150.01, and did you pay that off in full before the deadline?
    Originally posted by redpete
    The balance was zero...
    • PeacefulWaters
    • By PeacefulWaters 12th Apr 18, 6:30 PM
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    PeacefulWaters
    I don't think you answered the question "Are there any cash, currency or gambling transactions?"
    • eskbanker
    • By eskbanker 12th Apr 18, 6:38 PM
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    eskbanker
    I don't think you answered the question "Are there any cash, currency or gambling transactions?"
    Originally posted by PeacefulWaters
    See post #3 immediately after you asked that in post #2!
    Only spending was petrol...amazon....and food shopping
    Originally posted by dazzaofdagenham
    • dazzaofdagenham
    • By dazzaofdagenham 12th Apr 18, 6:39 PM
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    dazzaofdagenham
    I don't think you answered the question "Are there any cash, currency or gambling transactions?"
    Originally posted by PeacefulWaters
    No none of those...
    • dazzaofdagenham
    • By dazzaofdagenham 12th Apr 18, 6:41 PM
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    dazzaofdagenham
    Just a question though...

    When the balance was 150.01......as I said I made various payments of 175, and new spend8ng of 350.

    The first payment I made was 30 pounds straight away when statement generated.....could it be that counted as the payment towards the min payments and anything else didn!!!8217;t co7nt ?
    • PeacefulWaters
    • By PeacefulWaters 12th Apr 18, 6:46 PM
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    PeacefulWaters
    See post #3 immediately after you asked that in post #2!
    Originally posted by eskbanker
    Bad day. Somewhere in my head it became a vague answer when it clearly isn't.
    • Dobbibill
    • By Dobbibill 12th Apr 18, 6:52 PM
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    Dobbibill
    Can you tell us your statement date, due date, following statement date.
    Then all payments including dates.

    It looks like a timing issue but without the dates we are just guessing the most likely cause
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    • nic_c
    • By nic_c 12th Apr 18, 7:04 PM
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    nic_c
    It sound like confusion between the due date and statement date.

    What was paid after statement 2 was produced, since statement 3 will show interest from not clearing balance on statement 2 due date
    • daveyjp
    • By daveyjp 12th Apr 18, 7:58 PM
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    daveyjp
    Don't drip feed payments to a credit card bill as they operate around statement dates, not a rolling balance.

    The first payment was probably treated as the payment for that month against the statement balance, so that month's statement activity is effectively 'closed'.

    Any other payments made, even before the due date, will reduce your account balance for the NEXT statement date. Interest will therefore be due as the original amount due wasn't paid in full in one payment.

    Save the money somewhere else. Wait for statement, pay in full before due date. Don't treat it like a bank account as you will quickly come unstuck.
    Last edited by daveyjp; 12-04-2018 at 8:07 PM.
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