Banking?

DX24

DX24

DX24

Associate
Joined
21 Nov 2010
Posts
338
Hi all

Recently had my credit renewed in January. I have noticed a interest charge for the last three month's. Before it maybe happen once every now and again. Why is this? The card has £6900 and I've spent around £6650. Another is once the interest was £160 at 6250 and £200 at £6750 etc. Will the interest stop or is it a case of bringing down the balance. The last time they charged interest was when it went far into the balance.

Any info would be great.
 
You've nearly maxed out your card and are paying interest....yes that is how it works if you don't pay it back.

Don't tell me you did an interest free card transfer and now the interest free period has ended?
 
Have you been spending whilst on your 0% balance transfer card? Interest will acrue for spending on balance transfer cards. If you wanted to spend then you should have got a 0% purchase offer credit card.
 
Credit cards are not usually free. Aside from any interest free introductory period, you pay interest on any outstanding amount each month (it's one of the most expensive ways of borrowing money). The 'minimum amount due' is simply the minimum amount you must pay to avoid non payment fees.

What do you mean by "I have renewed my card"? Credit cards don't need renewing. So I assume you mean you have moved to a new card. If that's the case then I assume the interest free period has expired.

When you say that you have only paid interest occasionally in the past, has this been a late payment fee instead of interest?

It is a little worrying that you are asking such questions. Not because it's silly to ask (asking is always better than not knowing), but because you seem to have entered into a financial arrangement without fully understanding what you have agreed to.

Please phone your bank and ask them to explain exactly how your credit card works (they should really be called debt cards).
 
Hades said:
It is a little worrying that you are asking such questions.
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This. How the hell do you rack up £7k debt without even knowing the basic fundamentals of how a credit card works? Do you sign any piece of paper with pretty numbers on it? :confused:


I've always wondered how people can be so thick as to end up with thousands of pounds of debt with nothing to show for it. Now I know.
 
Diddums said:
This. How the hell do you rack up £7k debt without even knowing the basic fundamentals of how a credit card works? Do you sign any piece of paper with pretty numbers on it? :confused:


I've always wondered how people can be so thick as to end up with thousands of pounds of debt with nothing to show for it. Now I know.
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Spending and having nothing to show for it is an easy thing to do. I dare say say 3/5 of the population can't show what they have spent their money on.
 
The more you owe the higher the interest repayments unless you are on an interest free CC deal (balance transfer/purchases etc).

If you bought things with an interest free balance transfer CC that doesn't have an interest free on purchases offer then you'll pay interest on those purchases but not on the transferred balance (until the interest free period runs out anyway).

Sounds like you need to speak to the CC company and find out what sort of CC you have and start to clear the balance.
 
mrbell1984 said:
Spending and having nothing to show for it is an easy thing to do. I dare say say 3/5 of the population can't show what they have spent their money on.
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It's pretty scary tbh. People like that shouldn't be allowed anywhere near a credit agreement.
 
I've always firmly believed that schools should teach a "life skills" lesson in the final year, something along the lines of teaching people about credit/bills and other essential adult things.

Or just point them towards OcUK GD where we can spec you socks/underwear, how to not get scammed on ebay/gumtree, clothing and the best toys to keep people who fidget entertained - we need a "how to adult" sub forum.
 
You're supposed to pay off the card every month. It's wise to setup a direct debit to do this automatically. Credit cards are great but don't build up debt on them.
 
JOSH said:
I've always firmly believed that schools should teach a "life skills" lesson in the final year, something along the lines of teaching people about credit/bills and other essential adult things.

Or just point them towards OcUK GD where we can spec you socks/underwear, how to not get scammed on ebay/gumtree, clothing and the best toys to keep people who fidget entertained - we need a "how to adult" sub forum.
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We need a like button. Spot on mate. :)
 
JOSH said:
I've always firmly believed that schools should teach a "life skills" lesson in the final year, something along the lines of teaching people about credit/bills and other essential adult things.

Or just point them towards OcUK GD where we can spec you socks/underwear, how to not get scammed on ebay/gumtree, clothing and the best toys to keep people who fidget entertained - we need a "how to adult" sub forum.
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I agree.
 
How can you still not understand how this whole credit card thing works! it's not free money.
https://forums.overclockers.co.uk/threads/credit-card-interest.18750665/#post-30038013

DX24 said:
Thanks for your help. I just came across this online, someone had the same fee on their card. I get it now.

I finally got through and apparently the "merchandise interest" is the standard interest my account acrues based on a daily account balance when it is not paid offf in full at the end of the month.
It was not noted on my account prior to April 2008 as I was still in my 6 months interest free on purchases period.

Cheers again
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I think the OP needs to just stay away from anything credit related before he gets in to real trouble. Debt can ruin you.
 
delta0 said:
You're supposed to pay off the card every month. It's wise to setup a direct debit to do this automatically. Credit cards are great but don't build up debt on them.
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When I set up my accounts here I asked to have my credit card paid in full each month.

They laughed at me, like there was an option to *not* do that...silly Brits.
 
#Chri5# said:
It seems the only the time the OP might understand what he/she has got into is probably when the bailiffs knock on the front door...
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This plus the opening sentence in the OP ("Hi all, Recently had my credit renewed in January") tell me that the OP needs to speak to his bank before something unpleasant happens.
 
Diddums said:
I think the OP needs to just stay away from anything credit related before he gets in to real trouble. Debt can ruin you.
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I'm pretty sure he's already done for. He has what £7k worth of debt which isn't a small amount for a credit card with their monthly interest. It's also the maximum they were willing to loan him. He also doesn't have a clue how they work. Apparently he thinks it's free money or an interest free loan he never needs to pay back.

How he has managed to survive this long I'll never know. You can bet he's a low earner too. He will be lucky to make the minimum monthly repayment now his interest is £200 a month. End up either filing for bankruptcy, bailiffs or some financial service which consolidates all his loans into 1 low monthly fee.
 
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