PayPal

[Justasking321]

Hi, I hope I’m posting in the right place and someone can advise. I’ve had a PayPal account for years and probably use it one or twice a year. I know interest rates apply but I don't understand why balance is always high when I don't use it. My monthly minimum payment is usually £8-10 a month and I usually pay £20/25. However every month I log in my balance goes up. Last month my balance was £282 - today I’ve logged in and it’s £325 and I haven’t even used it. I feel like I’ve been trying to pay off over £200 for over 2 years. Can anyone advise?

Do you mean a PayPal credit card? I have a PayPal account that is linked to my bank account that I use to pay for things when I don't want to input my bank details. It doesn't have a balance on it. It used to sometimes when I had sold something on eBay but they are not linked any more.
Have you checked your account statement? If it is some sort of credit card and you are paying more than double the minimum payment, it should be reducing. Check you haven't inadvertantly set up some sort of monthly recurring subscription.

You need to check the monthly statement and see how interest is applied and at what rate, whether you've been charged late fees etc.

@Fizzadora I don't have a physical card. Just a PayPal account with an option to 'pay in 3' or just pay using PayPal credit if I were to buy something online. I can't even find a section to view proper statements, but looking at my transactions it's just me making payments every month. I did have a £1.99 subscription but I cancelled that. I just want to clear this and never use it again but the balance is always rising.

@Punxsatawnyphil definitely no late fees as I always pay on time. Maybe I need to log in on my laptop to get a statement because I can't see the option on the app.

I have a PayPal pay in 4 months interest free and there is no balance on it. It's zero. If you don't owe anything it shouldn't be going up

If it's PayPal credit, purchases are only 0% interest for 4 months, after that they start charging 23.9% apr. If you're only paying a minimal amount each month, it sounds like it could be the interest building up

You can find the statements in the app, click on the PayPal credit section of the app and click MANAGE which is next to activity. The go to statements.
I would personally set up a DD for the minimum and also make lump sum payments during the month to reduce the balance.

Thanks all. I'll check statements tomorrow when I have a bit of headspace.