2,953 online now
238,391 members
Newsletters
Log in or Join now

Fairfax Digital

Essential Baby > Lifestyle & Entertainment > Managing Money

Navigation

Welcome Guest
( Log In | Register )

Quick links

Help

Forum links

Blogs

Today's active topics

Newsletter Subscriptions

Rules

MyMoney

Try our new Finance Calculators:
http://compare.essentialbaby.com.au/life-s...wing-calculator

2 Pages

1 2 >

Initial purchase not paid on CC, what happens now??

yummymummycakes View Member Profile	13/01/2013, 09:47 PM Post #1
Posts: 1,363 Joined: 23-April 08
Advanced Member
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.

SeaPrincess View Member Profile	13/01/2013, 10:06 PM Post #2
Posts: 5,131 Joined: 11-October 06
+
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?

yummymummycakes View Member Profile	13/01/2013, 10:12 PM Post #3
Posts: 1,363 Joined: 23-April 08
Advanced Member
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.

dogged View Member Profile	13/01/2013, 10:14 PM Post #4
Posts: 2,362 Joined: 8-October 10
Advanced Member
have pm'ed you YMC

yummymummycakes View Member Profile	13/01/2013, 10:15 PM Post #5
Posts: 1,363 Joined: 23-April 08
Advanced Member
in the statement it does mention 'billed finance changes' what does that mean?

Tobias'smum View Member Profile	13/01/2013, 10:15 PM Post #6
Posts: 485 Joined: 12-May 12
Member
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

yummymummycakes View Member Profile	13/01/2013, 10:18 PM Post #7
Posts: 1,363 Joined: 23-April 08
Advanced Member
dogged - got your pm but am panicking for her!

- View Member Profile	13/01/2013, 10:20 PM Post #8
Posts: 1,158 Joined: 28-December 03
Advanced Member
May I ask which company? I can help with one, but not others. Some other people my well be the same.

blackbird View Member Profile	13/01/2013, 10:22 PM Post #9
Posts: 874 Joined: 20-May 05
Regular Member
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

yummymummycakes View Member Profile	13/01/2013, 10:43 PM Post #10
Posts: 1,363 Joined: 23-April 08
Advanced Member
it is through Gomastercard

« Next Oldest · Managing Money · Next Newest »

2 Pages

1 2 >

1 User(s) are reading this topic (1 Guests and 0 Anonymous Users)

0 Members:

Display Mode: Standard · Switch to: Linear+ · Switch to: Outline

Track this topic · Email this topic · Print this topic · Subscribe to this forum

The accidental attachment parent

"Attachment parenting has set me up for ... well, I'm not going to say failure, but for a very difficult time," says one mum.

Baby love is worth the expense

Amidst all the arguing over which paid parental leave scheme is best for parents, is anyone talking about what's best for babies?

Immunisation, fever and pain relief

Find out the benefits and risks involved with protecting your child from harmful diseases.

Thank You Mum

Send your mum a personalised eCard this Mother?s Day to show her you are thankful and to help us remember the women who face motherhood in situations of great adversity.

Free: 'The First Year' ebook

Check out our new interactive ebook, part of the brand new SMH Shortbooks series, for free!

One mum's 'biggest mistake' offers lesson for all

A mother sparked conversations around the world when she declared, in a national newspaper, that she wished she'd never had her two children. But her story can teach us a valuable lesson on parenthood.

Ask an expert: My child is suddenly resisting toilet training

My child is resisting the toilet training process. We got off to a good start, but now she?s refusing to use the toilet. What can we do now?

Johnson's Baby 'how to' videos

We've learned a lot since we launched our first JOHNSON'S� baby powder way back in 1894, so we've put together this collection of 'how to' videos to get you started on your exciting journey.

New dads are sexy and they know it

While most women wouldn?t associate being a new parent with feeling more attractive, it seems men see it differently: they think they?re better looking than before they were dads.