Amex Credit Card Interest Charge! Ouch!!
Discussion
The other month i had £5K of business expenses on my credit card which i hadn't got round to claiming back yet.
I didn't have the funds in my account at the time so i made a £2K payment on the due date to satisfy the minimum payment, then paid the remaining £3K off 5 days later.
I assumed this would just create a couple of quid interest which i wasn't worried about.
However just seen my statement, and i was charged £70! £70 for 5 days interest on £3K!!!
I normally pay off in full each month so don't get charged interest. But This seems a ludicrous amount!
I now see how people seem to get into massive debt with credit cards now!
I still don't really see how they calculate this, as its 18%apr which should by my calculation be much less than £70, but I've spoken to them and they confirm its correct.
Warning to all, pay it off
I will be making sure its paid off in full on time in future!
I didn't have the funds in my account at the time so i made a £2K payment on the due date to satisfy the minimum payment, then paid the remaining £3K off 5 days later.
I assumed this would just create a couple of quid interest which i wasn't worried about.
However just seen my statement, and i was charged £70! £70 for 5 days interest on £3K!!!
I normally pay off in full each month so don't get charged interest. But This seems a ludicrous amount!
I now see how people seem to get into massive debt with credit cards now!
I still don't really see how they calculate this, as its 18%apr which should by my calculation be much less than £70, but I've spoken to them and they confirm its correct.
Warning to all, pay it off
I will be making sure its paid off in full on time in future!
I've had an Amex card over 30 years. One of the good things is that their monthly statement shows the o/s balance, the minimum that you can pay and the interest that will be paid if you don't pay the o/s balance, meaning I always know the situation. All this information is easy to see. I cannot see how anyone can be surprised by the amount that Amex charge as interest if the full amount is not paid off because it's always clearly stated.
Ergo, always pay the balance by the due date.
R.
Ergo, always pay the balance by the due date.
R.
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