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.


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

#4 BenevolentDictator

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


#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 IShallWearMidnight

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


Join the Real Mums Test Drive Team

Five new mums will join the Essential Baby Test Drive Team and discover great new baby toys from Fisher-Price & write a review to be published on Essential Baby.

Two children fall from second storey window

Two young boys have been rushed to hospital after falling out a second-storey window of a home in Eastwood.

Victorian Labor to introduce same-sex adoption laws

Thousands of same-sex couples with children will have the right to be jointly recognised as parents by Victorian law.

Sneak peek: Maxomorra bee dress, t-shirt and romper for babies

Cutest snap find on the planet - bee rompers, tees and dresses for babies.

Toddler found two days after going missing

A two-year-old girl who disappeared on Friday night from her great-grandparents' home in rural Ohio was found alive Sunday evening in a nearby field.

Dad builds the ultimate bed for his toddler son

The transition from cot to big kid bed might be a little easier if every toddler had a bed like this one.

Is Woolworths now cheaper than Coles?

Woolworths appears to have taken the upper hand in its price battle with Coles after investing millions of dollars lowering the cost of groceries, according to new figures.

Aussie babies and parents stranded in Nepal after surrogacy ban

Parents say Australian babies are being "kept captive" and cannot come home after a ban on commercial surrogacy in Nepal.

Wannabe dads left behind in IVF debate

If virgin women can become mothers through IVF, maybe we're ready for another miracle - genuine equality for men in the parenting debate.

The health and fitness lessons I've learned

What I once assumed about health and fitness is wrong.

Our angel baby story: Hunter James

I have two children: one living, the next an angel baby.

Newlyweds send bill to no-show guests

Planning a wedding can be stressful – and, as most newlyweds can attest, it can be very costly, too.

Your choice or theirs: the tug-of-war over baby names

They had just decided on a name they both agreed on, but then the grandparents threw in an offer of $10,000 in exchange for choosing something else.

Dad-to-be's tearful reaction to pregnancy news goes viral

After 17 years of trying, this man had given up hope of having a family.

Claire Danes: acting out postnatal depression was difficult

Actress Claire Danes found it difficult pretending to have postnatal depression in Homeland, as she had just become a new mother herself.

The moment a 92-year-old meets her great grandaughter

It's a heart-warming photo this family will treasure forever.

How to prepare for breastfeeding when you're still pregnant

While every woman's breastfeeding journey is different, many hurdles are shared. Knowing what to expect will enable you to make informed decisions if - or when - you meet challenges along the way.

Sneak peek: new Love Mae bamboo dinnerware designs

We do love ourselves some brand new designs in tried and true products. The renowned bamboo dinnerware from Love Mae has just had several more members join the family, in addition to a brand new website.

Mum who killed paedophile gets reduced sentence

A mother-of-five who killed a paedophile has had her jail sentence reduced by a judge who described her case as a "truly exceptional" one.

Sneak peek: Geleeo self-cooling pram & high chair liners

We just spotted Geleeo, a brand new self-cooling pram liner you can buy in time for summer.

Toddler's silent debate with mum about naptime

He might not utter a single word - but this toddler is having a great debate with his mother about nap time.



Can't decide?

Check out the Essential Baby Names section for some inspiration

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.