Credit Card Conundrum

pvt6zh395dqbrj

Hi everyone,

So last month I got a credit card statement and on the statement it told me that my balance was 185euro and my minimum payment due was 19 euro. I have a direct debit set up to take the minimum payment due on the 20th of each month. But... on the DD day last month it took the whole 185 from my account instead of the (much lower) minimum payment.

Does anyone know why this would happen? I'm just worried cos the balance for my next payment is quite high and I don't think I could handle it being removed from my account instead of the minimum payment.

Thanks everyone.

Scortho

Jesus Mysterious Telescope wrote: »

Hi everyone,

So last month I got a credit card statement and on the statement it told me that my balance was 185euro and my minimum payment due was 19 euro. I have a direct debit set up to take the minimum payment due on the 20th of each month. But... on the DD day last month it took the whole 185 from my account instead of the (much lower) minimum payment.

Does anyone know why this would happen? I'm just worried cos the balance for my next payment is quite high and I don't think I could handle it being removed from my account instead of the minimum payment.

Thanks everyone.

Best thing to do would be to contact your bank and ask them about it.

Word of warning. Paying the minimum balance off each month is a false economy. You'll end up spending years paying back very small value purchases due to the interest attached. Not a good financial road to go down.
Credit cards are great but they can also be lethal. They give you extra protection if the selker fails to deliver on tge goods.
They give you 30 day interest free credit but don't repay in full and that interest free credit has now became high teens, low twenties.
I'm not trying to pick on you or look down on you or anything like that, just be very careful when it comes to minimum payments.

For example if you have 3000 outstanding on your credit card balance at the moment and make the minimum payment each month, it'll take 18 and a half years to pay it back. At an interest rate of 18% and a minimum payment of interest plus 1% of the balance, you'd end up paying 3923 euro in interest alone. At that's without adding onto the balance in the next 18 years.

http://www.moneycoach.ie/creditcard.php

Mort5000

Scortho wrote: »

They give you extra protection if the selker fails to deliver on tge goods.

I stand to be corrected, but I believe the same protection is afforded to Visa Debit cards.

Scortho

Mort5000 wrote: »

I stand to be corrected, but I believe the same protection is afforded to Visa Debit cards.

You're right there. Laser didn't but visa debit do.
That said if you look at the t&c's on some of the visa debits they say that they might. But apparently since they're signed up to visa, they have to as its one of visas terms.

Mort5000

I suppose the point of my comment really was that we should stay away from Credit cards as far as possible, and that Debit cards (with VISA) appear to offer the same protection without the added risk of getting into serious debt.

To the OP, pay it off ASAP, throw it away, get a Debit card.

murphaph

Scortho wrote: »

They give you 30 day interest free credit

in fact you can get almost 2 months interest free. In my case my statement is issued on the 5th of the month for payment by the last day of the following month, so approximately 8 weeks interest free (on purchases).

Your post is spot on though, paying minimum payments is the road to ruin for many.

murphaph

Mort5000 wrote: »

I suppose the point of my comment really was that we should stay away from Credit cards as far as possible, and that Debit cards (with VISA) appear to offer the same protection without the added risk of getting into serious debt.

To the OP, pay it off ASAP, throw it away, get a Debit card.

A debit card is no use when renting a car though (for example). Some hotels will also require a CC to block a deposit, which will not be possible with a debit card.

BuffyBot

..and what all this has to do with the OP's original question, I have no idea. Back on topic folks.

murphaph

I think his question has been answered as much as it can be: He needs to contact his bank and ask what went wrong and to ensure it doesn't go wrong again. Nobody here can say why hi bank took the full amount and not just the min payment.

pvt6zh395dqbrj

I already figured that the best thing to do was to ring my bank. I was just asking to find out if anyone else had the same problem before. Also, lecturing me on my money habits is probably way above everyone's pay grade and I don't appreciate it so stop and perhaps don't reply to my posts again if you're going to take that line. If I want to put myself in dire financial straits then its my business.

For the record, normally I make well above the minimum payment. Its just the next two months I thought I'd make the minimum payment because I had alot of expenses during those times, but why let that stop you belittling a fella for asking a question.

I don't think the thread has any more usefullness so I guess there's no reason to leave it unlocked.

Mort5000

Jesus Mysterious Telescope wrote: »

I already figured that the best thing to do was to ring my bank. I was just asking to find out if anyone else had the same problem before. Also, lecturing me on my money habits is probably way above everyone's pay grade and I don't appreciate it so stop and perhaps don't reply to my posts again if you're going to take that line. If I want to put myself in dire financial straits then its my business.

For the record, normally I make well above the minimum payment. Its just the next two months I thought I'd make the minimum payment because I had alot of expenses during those times, but why let that stop you belittling a fella for asking a question.

I don't think the thread has any more usefullness so I guess there's no reason to leave it unlocked.

*hug*