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Is this standard credit card interest

(4 Posts)
VivaLeBeaver Fri 29-Jul-11 15:53:16

I normally pay 100% of my credit card bill every month but last month accidently underpaid by £12. So in one month they've added £4.62 interest and I now owe £17. It says that interest is 0.026 a day (9.95pa), it just seems a lot to add on. Obviously its only a small amount so not a problem. But thats more like 33% interest. Am I being thick.

mranchovy Fri 29-Jul-11 17:49:57

If you don't pay the whole bill off, interest is charged on the whole amount, not just the outstanding balance. So presumably the bill was about £582 and you paid £570?

That's one of the ways they make their money.

VivaLeBeaver Fri 29-Jul-11 17:55:38

Wow, had no idea they charged interest on all of it! Buggers. But yes, it adds up now. Thanks.

CogitoErgoSometimes Sat 30-Jul-11 05:32:05

To avoid this in future you might want to consider setting up a DD to pay off the full amount each month. Make sure you keep careful tabs on the balance so that you have enough funds in your current account to make the payment.

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