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 Weirdly Sane

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 Safety Queen

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 IShallWearMidnight

Posted 14 January 2013 - 12:48 AM

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




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 

Chrissy Teigen's pride about daughter's adorable first word

Chrissy Teigen and John Legend have celebrated their 11-month-old baby Luna's first word with an adorable Instagram post.

The photo that sums up how dads REALLY feel during labour

A new mum shared a hilarious photo of her partner during labour that lots of dads will relate to.

You can never hold your baby too much, says study

From the world of super obvious science comes the news that you can never hold your baby too much.

Babies called Romeo and Juliet born hours apart in the same hospital

Two mums gave birth in adjoining hospital rooms a few hours apart. They had never met, and had each chosen their baby's name earlier in the pregnancy.

Mum organises 'nurse-in' protest at IKEA

It's hard to believe than in 2017 mums are still receiving flak for breastfeeding in public, but that's what one US mum claims happened in IKEA.

Will 'How Not to Hate Your Husband After Kids' be a best-seller?

Author Jancee Dunn hopes her new book will help mums deal with the stresses that parenthood can place on an otherwise happy relationship.

The dad who was taunted for taking paternity leave

They imagined that while I was away, I would be glued to the couch, beer in hand. In no way would I actually be helping my wife.

Photographer surprises couple with rainbow baby shoot

The prettiest and most unexpected maternity shoot for a much-wanted rainbow baby.

Mum's funny solution for finding 'me time' with a toddler in tow

If you've ever been in possession of a toddler, you'll know that it's next to impossible to get anything done.

Qualities my three-year-old has that I admire

My three-year-old daughter is one of the strongest little women that I know. As I watch her grow into this amazing person, I can't help but feel accomplished and proud.

'You need to be present': John Legend on supporting a partner with PND

Singer John Legend has opened up about supporting wife Chrissy Teigen through postnatal depression.

The seven types of 'parent sleep'

The question, "Did you sleep well last night?" should be easy to answer. Either a yes (if you're lucky), or a no.

'Anxiety hit me like a ton of bricks'

Tammin Sursok has written an essay sharing her personal experience with postnatal anxiety.

11 things to do to protect your mental health while breastfeeding

Whether breastfeeding is going well or you are finding it harder than you expected, taking care of you needs to be a priority.

Couple announces they're both expecting - three weeks apart

Being pregnant at the same time as your best friend means double the excitement.

Why Dax Shepard was 'impressed' when his daughter swore for the first time

Actor and comedian, Dax Shepard has given a hilarious recap of the lengths he'll go to get, and keep, his kids asleep.

Video captures beautiful breech caesarean birth

A new life is brought gently into the world with tender and expert hands.

Mum warns of vacuum danger after toddler injured

Every parent knows toddlers can move fast, now one mum is warning about the dangers of allowing small children anywhere near vacuum cleaners.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

From our network

Win 1 of 10 awesome Peppa Pig prize packs

Who loves Peppa? We have 10 packs to give away - including family passes to see the brand new movie, in cinemas March 16!

Essential Baby & Toddler Show, presented by Blackmores

28th - 30th April, 2017, Melbourne Royal Exhibition Building, Carlton. Get your FREE ticket now. Save $20.

 

Free ticket offer

Essential Baby & Toddler Show, presented by Blackmores

28th - 30th April, 2017, Melbourne Royal Exhibition Building, Carlton. Get your FREE ticket now. Save $20.

 
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.