Charges on Credit Card

D

dogsay

Guest
Hi... My credit card is 2000 in overdraft, just inside the limit allowed. I'm only starting to finally pay it off now. I seem to be paying three charges and was wondering if this was correct. They are 1) Purchase Interest 21.06 euros 2) Cash Interest 3.67 euros 3) Payment and Purchase Protection 15.65 euros... Just wondering why there are three charges and if there was anyway of avoiding them.
 
1. Purchase Interest - interest on purchases - point of sale items / online etc
2. Cash Interest - interest on cash advances from ATM's
3. Payment Protection - monthly insurance as % of the outstanding balance. You can cancel this, but this is usually for payment protection if you were to become unemployed due to redundancy or illness etc.
 
I haven't made any cash withdrawals in the last year but have still been caught for this charge. Can I claim this back.
Might check about switching cards, every penney saved is welcome
 
dogsay said:
I haven't made any cash withdrawals in the last year but have still been caught for this charge. Can I claim this back.
Might check about switching cards, every penney saved is welcome
Click to expand...

transferring money online from your credit card to another of your own bank accounts is also considered a cash withdrawal afaik so you might want to check if you've done this.
 
I got charged when I didn't even use the credit card one month...
 
dogsay said:
I haven't made any cash withdrawals in the last year but have still been caught for this charge. Can I claim this back.
Might check about switching cards, every penney saved is welcome
Click to expand...
But did you EVER get cash advances? If so and they remain part of the outstanding balance then you will be charged interest on them.
dogsay said:
I got charged when I didn't even use the credit card one month...
Click to expand...
Similarly if you have an outstanding balance (comprising purchases and/or cash advances) then you will be charged interest even if you don't use the card in a particular month.

Not sure if that helps but if necessary perhaps you could post some more specific/detailed info/figures to clarify your situation and suspicion of being mischarged?

If every penny counts then you should carefully review the payment protection policy and consider cancelling it to save the €15 p.m. and redirect it towards reducing the debt.
 
If I were you I'd cancel the payment protection policy, if you are sure of permanent employment. I cancelled mine a few months back. I thought you had to have it until I was enlightened on here that you didn't have to!
 
Thanks for the advice... Gonna cancel the payment protection straight away, am lucky to be in a permanent position. I did take out a cash advance before which prob explains the constant cash interest charge.
 
Still -if you are in any doubt about the charges/figures then just query them with the card provider.
 
Cash Advances

Get a copy of the fees and charges.

Generally, the highest interest items (i.e. cash advances) are the very last thing to be paid off. So until you clear your card 100%, you'll always be paying those damned cash-advance interest charges.
 
sean.c said:
Get a copy of the fees and charges.

Generally, the highest interest items (i.e. cash advances) are the very last thing to be paid off. So until you clear your card 100%, you'll always be paying those damned cash-advance interest charges.
Click to expand...

This is now changed. I was talking with MBNA the other week and got the revised T&Cs in the post shortly after. Payment is now aimed at highest interest rates first. Not sure if that means it is only applicable to transactions after this date, but it's a measure to help people lower the debt on cards.
 
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