CreditCards Blog

I have had credit cards for years, but always paid them off in full each month. I got married at the end of October and failed to juggle sufficient cash in time to pay our credit card in the usual way. Our bill was 2,800, I paid 2,000 before the due date and the balance 4 days after the due date. I assumed I would only pay interest on the 800 for 4 days. I have just received my next statement and been charged 80 interest .... outraged I called customer services and was told that if the balance is not paid off in full, you pay interest on the full bill (2800), not the actual amount owing ... is this correct?

Yes. Old story. Bad luck.

You get up to 56 days interest free on the proviso you settle the bill in full. If you pay so much as a penny less then you pay interest on all transactions from the purchase day.

As KimYeovil said, it's a common mistake. On the plus side, you've probably gained a similar amount on interest over the years with the interest free period when you pay in full :).