Re: Paying Credit Card in full or not

At 12:55:10 on 13/04/2009, Gordon H delighted uk.finance by announcing:

In message <HVuEl.12462$OO7.2513@xxxxxxxxxxxxxxxxxxxxxxxxx>, BartC
<bartc@xxxxxxxxxx> writes

"Chris Lawrence" <news@xxxxxxxxxxxxx> wrote in message
news:49e2764d$0$508$bed64819@xxxxxxxxxxxxxxxxxxxx
BartC wrote:
An actual example in my case was paying off £240 of the £320
due, on the due date, paying the remaining £80 a couple of
days later. I was charged interest on the full £320 not £80.

Ah, it sounds like you're describing making a payment after the
monthly statement has been created. In that case yes, the amount
is whatever it is, and interest is considered against it.

I thought you were referring to making a payment during the month
*before* the statement was created, thus reducing the balance in
time for the statement. Indeed if I spent 1000 quid on the card
on 20th, and then paid 1000 quid back on 21st, when my statement
was created around 28th it would be for zero balance and nothing
would be due.

Suppose you paid only £900 on 21st, and nothing more? Your
statement would be for £100, but if you didn't pay that in time,
what would you pay interest on, £1000 or £100?

(Actually I'm not sure if the early payment in my scenario would
work if nearly all the balance was paid before the statement date.

But in this case consider a slightly different example where you
spend £1000 the day before the statement date, and pay £999 of it
the day after the statement date. As for as I know, you will be
charged 3 weeks' (or so) interest on £1000 if that remaining £1
isn't paid in time; not 2 days' worth.)

All this discussion makes the case for preferring debit cards of
course. 8-)

No it doesn't. It just makes the case for paying in full every month.
.

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