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Credit card - I didn't know this

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I usually pay my CC bill in full each month, but am prone to the odd lapse. Last year I forgot to pay by the due date, and got stung, but fair enough my fault.

This month i read the wrong months statement and paid £57 short. Anyway checking my bill i saw £54 interest, so gave them a call. Apparently, and I had no idea, maybe naively, that if you pay just a penny less than the FULL amount each month, you get charged interest on the whole amount for that month.

Feeling a bit aggrieved i insisted on speaking with a manager, but met quite some resistance although got there in the end. Manager immediately offered to drop the full interest charge although i said I was happy to pay interest on the £57 i paid short.

Not saying the CC company did anything wrong (it's in the small print which they were quick to point out) but I can see now how CC debt can escalate, and people get in bother, be warned.

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... and now you know!

 

You may also see interest on subsequent months as well.

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... and now you know!

 

You may also see interest on subsequent months as well.

 

Yes. Suspected I may not be the only one who didn't know so put it out there.

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Setup a direct debit so it can't happen again?

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I'm pretty sure they did this when ofcom or whoever told the banks they could only charge £12 for late payments etc. They also veremently charge you the £12 as soon as you are one second late! Before this it was discretionary.

 

So reduced charges a win for the consumer?

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