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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 2
    • dazzaofdagenham
    • By dazzaofdagenham 12th Apr 18, 8:12 PM
    • 1,135 Posts
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    dazzaofdagenham
    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.
    Originally posted by daveyjp
    I think thatís what was just explained to me on the phone.
    • dazzaofdagenham
    • By dazzaofdagenham 12th Apr 18, 8:13 PM
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    dazzaofdagenham
    The extra spending of 350 was for a unexptected breakdown of fridge freezer...so wasn!!!8217;t really plann8 g on us8ng card to that extent
    • eskbanker
    • By eskbanker 13th Apr 18, 12:54 AM
    • 6,805 Posts
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    eskbanker
    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.
    Originally posted by daveyjp
    I've always been under the impression that full settlement of statemented balance any time between statement date and due date negates interest, regardless of whether it's in one payment or multiples, and have never heard of a statement being 'closed' after a partial first payment if a subsequent payment is enough to settle the full balance before the due date. It's often recommended on here for people to use a DD to pay off the minimum and to make manual payments over and above this, but it would be a waste of time suggesting that if only the first payment counted.... Do you have specific examples of cards that work the way you say?

    I think thatís what was just explained to me on the phone.
    Originally posted by dazzaofdagenham
    Which card do you have and do the Ts & Cs make any reference to the multiple payment treatment that daveyjp refers to?
    • Ben8282
    • By Ben8282 13th Apr 18, 3:12 AM
    • 2,209 Posts
    • 977 Thanks
    Ben8282
    I've always been under the impression that full settlement of statemented balance any time between statement date and due date negates interest, regardless of whether it's in one payment or multiples, and have never heard of a statement being 'closed' after a partial first payment if a subsequent payment is enough to settle the full balance before the due date. It's often recommended on here for people to use a DD to pay off the minimum and to make manual payments over and above this, but it would be a waste of time suggesting that if only the first payment counted.... Do you have specific examples of cards that work the way you say?
    Originally posted by eskbanker
    I agree. What has been written above is nonsense. Furthermore, spending after the statement date cannot affect the current statement in any way.
    To return to the original problem. unfortunately the OP appears reluctant to post specifics with regard to dates and amounts.
    According to the OP:
    Statement Month 1 - Balance 0, (presumably no payment made?)
    Statement Month 2 - Balance 150.01 - £175 paid in several payments
    Assuming that at least £150,01 was paid before the payment due date, no interest would have been charged.
    The allocation of the payments would have been £150.01 to the previous statement balance, £24.99 to the unstatemented transactions debited to the account after the statement date
    The most obvious answer is that the full amount of £150.01 was not received by the statement date OR that there were cash transactions involved somewhere.
    Quite why the OP found it necessary to make several payments or pay off unstatemented purchase transactions is unclear.
    Just to make things clearer could the OP please confirm that a total of £175 of payments actually appear on the Month 3 statement and that the dates on which at least £150.01 of these payments were applied to the account are dates on or after the date of the Month 2 statement and on or before the payment due date for that statement.
    Another possibility is that one or more of these payments could have been made using a payment method which does not result in the payment being immediately applied to the account. A payment made by faster payment on the due date would normally be OK but a debit card payment made on the due date may not have been processed and applied to the account as cleared funds until after the payment due date.
    My final question is what was the actual balance of the Month 3 statement? The answer should be £325.01 + whatever the amount of interest was.
    Last edited by Ben8282; 13-04-2018 at 3:35 AM.
    • Dobbibill
    • By Dobbibill 13th Apr 18, 6:22 AM
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    Dobbibill
    The only other question to add OP - is it a TSB Advance CC?

    If you have paid all balance due by the due date - rather than by the next statement date then you should not have paid interest.....unless it was the card above.
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    • dazzaofdagenham
    • By dazzaofdagenham 13th Apr 18, 8:11 AM
    • 1,135 Posts
    • 382 Thanks
    dazzaofdagenham
    The only other question to add OP - is it a TSB Advance CC?

    If you have paid all balance due by the due date - rather than by the next statement date then you should not have paid interest.....unless it was the card above.
    Originally posted by Dobbibill
    No not one of those cards
    • Merlin139
    • By Merlin139 13th Apr 18, 8:28 AM
    • 4,691 Posts
    • 19,100 Thanks
    Merlin139
    This could be solved so easily if the OP gave all of the information!

    Post the details of the statements with the dates and amounts of all the transactions and then everyone who is offering advice will be able to make a correct assessment of the situation and explain what has happened!

    Its not as if its a matter of national security!

    I start to question why the OP has not given all the information?
    • bengal-stripe
    • By bengal-stripe 13th Apr 18, 9:00 AM
    • 3,191 Posts
    • 2,083 Thanks
    bengal-stripe
    .......unfortunately the OP appears reluctant to post specifics with regard to dates and amounts.
    Originally posted by Ben8282
    Obviously, the OP likes us to play guessing games.

    Statement 1:
    Date of statement: xx/xx/xxxx
    Balance £150.01
    Payment due date: xx/xx/xxxx

    Statement 2 (approximately 1 month after Statement 1) will list all spends and all monies credited with the exact date they were debited/credited to the account. What payments were booked between Statement 1 date and Payment due date?

    The answer should be a simple list of all the payments received between those two dates, but the OP refuses to give those.
    • dazzaofdagenham
    • By dazzaofdagenham 13th Apr 18, 9:12 AM
    • 1,135 Posts
    • 382 Thanks
    dazzaofdagenham
    Obviously, the OP likes us to play guessing games.

    Statement 1:
    Date of statement: xx/xx/xxxx
    Balance £150.01
    Payment due date: xx/xx/xxxx

    Statement 2 (approximately 1 month after Statement 1) will list all spends and all monies credited with the exact date they were debited/credited to the account. What payments were booked between Statement 1 date and Payment due date?

    The answer should be a simple list of all the payments received between those two dates, but the OP refuses to give those.
    Originally posted by bengal-stripe
    Not refusing at all.

    Trying to compile now
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