Jump to content

Initial purchase not paid on CC
what happens now??


  • Please log in to reply
12 replies to this topic

#1 yummymummycakes

Posted 13 January 2013 - 09:47 PM

My DD took out a cc with an interest free period of 12 or 18 months (she cant remember) for a purchase amount of $663. However rather than paying that off she has made more purchases and now owes $5k on the card.

Can someone tell me what happens with the unpaid interest free purchase and roughly how much the interest would be when it it hits the card?

How does the card company recognise that amount being paid? For example if I paid the $663 then would the interest be avoided or does the entire amount need to be paid?

Please help, I am totally lost as I have never had a cc and she has a mental health condition and is just sticking her head in the sand.

#2 SeaPrincess

Posted 13 January 2013 - 10:06 PM

Generally, payments are applied to the most recent purchases first, so you'd need to pay off the whole amount to cover the original purchase.  The interest rate could be over 20% - your best bet is to have a look if the interest rate is showing on a statement, or call the CC company.  Is she being charged interest on the new purchases?  How long has she had the card?

#3 yummymummycakes

Posted 13 January 2013 - 10:12 PM

this is what is saying on the home screen message

"Just a reminder that your interest free period is due to expire soon on one of your purchases.

To avoid paying unnecessary interest, make sure you pay the outstanding amount by your due date. To view the full details of your promotion go to Transactions, located under My Account.


OR



If you plan to pay your purchase off over time, check your statement for the minimum monthly payments due.

#4 claptrap

Posted 13 January 2013 - 10:14 PM

have pm'ed you YMC

#5 yummymummycakes

Posted 13 January 2013 - 10:15 PM

in the statement it does mention 'billed finance changes' what does that mean?

#6 Tobias'smum

Posted 13 January 2013 - 10:15 PM

generally its last purchase first however some you can call to make a payment to a particular interest free purchase so it pay to call to see if this can be done

all the best

original.gif

#7 yummymummycakes

Posted 13 January 2013 - 10:18 PM

dogged - got your pm but am panicking for her!


#8 *-*

Posted 13 January 2013 - 10:20 PM

May I ask which company?

I can help with one, but not others.  Some other people my well be the same.

#9 blackbird

Posted 13 January 2013 - 10:22 PM

When the interest free period is over, if the entire amount owning on the card is not paid then your DD will pay the same interest rate on the initial purchase that the rest of the purchases are subject to,

interest free terms are designed to suck you in to doing just what your DD has done she could now be paying as high as 25% interest on that 5k, which compounds each month and sometimes they have daily calculations

#10 yummymummycakes

Posted 13 January 2013 - 10:43 PM

it is through Gomastercard

#11 blackbird

Posted 13 January 2013 - 11:26 PM

oh no!

well I got this from the site, see below. that card is through gemoney, they have really been bad for many people I know, might be better off trying for a balance transfer to another card company on a low interest rate, some even do interest free on balance transfers and then you go on the a low interest rate, always check what the rates will be.

Payments after the Interest Free period
If you haven't paid off your purchases within the Interest Free period, you will be charged interest on the outstanding amount from the date your Interest Free period expired. This interest will not be backdated.

Credit Card Up to 21.74% Interest rate applicable to outstanding credit card purchases.
Cash rate Up to 29.49% Interest rate applicable on cash advances, purchases & BPAY where biller doesn't accept credit or we have otherwise told you that will be treated as a cash advance.
Expired Promotional Purchases 29.49% Interest rate applicable on outstanding balances that aren't subject to a promotional period.

your DD will pay nearly 30% interest on the initial purchase :s

the interest rates were hard to find, took a bit of digging but its here- http://www.gomastercard.com.au/features/rates-and-fees.html

she needs to do a balance transfer with another bank asap. Well thats what I would do.


Edited by blackbird, 13 January 2013 - 11:28 PM.


#12 yummymummycakes

Posted 14 January 2013 - 12:26 AM

it appears that the interest free period ends on the 18th of this month.....Urgh what a mess!!!

#13 Feralishous

Posted 14 January 2013 - 12:48 AM

how frustrating! Hope shes learnt her lesson, albeit the hard way!




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

Video: 10-week-old baby sounds like she says 'I love you'

It’s mixed in amongst garbled baby talk, but this 10-week-old's apparent attempt at telling her parents that she loves them has made her an internet star.

I only enjoyed pregnancy after booking my caesarean

To say I became obsessed is something of an understatement. Everywhere I went I found cause to be reminded of my impending pain.

When your bundle doesn't bring immediate joy

One mum says joy is very a personal feeling and expecting all new mums to feel it in the months after their baby born may do more harm than good.

Lessons learned from my toddler

Blogger Kiran Chug explains why she is going to let her toddler make more decisions for himself.

Family welcomes first baby girl in more than 100 years

The Silverton family has heard the phrase "it's a girl" for the first time in four generations.

When a community of kindness steps in

In future when someone I care for, or even someone I barely know, is experiencing a difficult time, I will not overthink it. I'll follow my heart.

Mum in Business: Jac Bowie

Jac Bowie is the founder of Business in Heels, one of the fastest growing women’s networking events in Australia. She shares her story, including how she juggles work with a young family, and ways to work smarter.

What not to say to a mum of twins

Being a mum of identical twin boys stirs up great interest and fascination. It also opens itself up to nosy, invasive questions, as well as huge assumptions.

The mums suing over unplanned babies

A mother-of-five who calls her two youngest sons "miracle babies" is just one of many mums seeking financial compensation for their children's unplanned conceptions.

Video: Dad sings 'Hallelujah' to his daughter every year

It's a gorgeous song to begin with, but this dad's version of Hallelujah, sung for his young daughter, is especially touching.

Constipation in babies when starting solids

While starting solids can be frustrating and messy (yet also fun!), introducing solids can also play havoc on tiny digestive systems.

Parents reunited with baby snatched from hospital

A mother whose newborn baby was snatched from hospital has spoken of her joy and relief at getting her daughter back.

In defence of the bumpie

Are bumpies - bump selfies - really "exhibitionism of the weirdest kind"?

Life on the other side of the fence: Why I'm child-free and quite content

Acknowledging that motherhood isn't a bed of roses – to begrudge lack of time, sleep, money and spontaneity – is sacrilegious and a no-no, especially by mother superior-types.

'Go the F*** to Sleep' author's new book for frustrated parents

A sequel is coming soon to the 2011 hit book 'Go the F*** to Sleep' - and this time, it's about mealtimes.

Win a $200 Pumpkin Patch voucher

Fill out this quick survey and tell us in 25 words or less your best pregnancy or parenting tip - you'll go in the draw to win a $200 Pumpkin Patch voucher.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Losing yourself to motherhood

While watching your baby grow into a unique little person is exciting and wondrous, the intensity of meeting everyone else?s needs can ever so sneakily overtake your own needs for self-care.

Tearing during delivery: the facts

Almost all women will experience bruising, grazing or tearing after a vaginal birth. Depending on the degree of tearing, there are various treatments available.

6 tips for a day out with a baby and toddler

Outings can be lots of fun with the kids, but there are inevitable challenges. Here's some information about days out to help you be a little more prepared.

Why I invited a dozen people to watch my son's birth

I sent invitations on burgundy scrapbooking paper stamped with a field of poppies, and told each person why I wanted him or her there. I warned that there would be nudity.

Getting labour started: tips for a natural induction

When your baby?s due date comes and goes without so much as a pop - let alone a bang - it can be disheartening. Mums and a doula share their stories of natural inductions.

7 mistakes old hands make with new babies

As I sat across the table from my friend ? me, a seasoned mother of three; her, a brand new mum ? I thought of all the mistakes an old-hand parent can make when visiting a newborn baby.

That's my boy: a dad's diary of the first 4 months

Unbearable anxiety, unspeakable joy, constant exhaustion and bouts of frustration ... The many shocks of first-time fatherhood resound in a dad's diary of his son's early months.

One of the most important things a new mum can do

Finances may not be as cute as a newborn, but with many women?s working arrangements changing post-baby, monetary matters need attention too.

In defence of the bumpie

Are bumpies really "exhibitionism of the weirdest kind", as one writer has claimed?

Personalised baby gifts

We've scoured the internet to find gorgeous personalised keepsakes and nursery decor to record baby name and dates. They make great gifts for christenings, name days and birthdays! (All prices in AU.)

 

My Wellbeing

Making time for me

We look at your wellbeing, covering health, relationships, beauty and fashion, mind and body.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.