ARG! I hate interest.

**cheappearls** · 01-25-2007, 03:02 PM

So I was thinking after I did the "get naked" post (that sound so funny) that what I think the c.c balance is is probably different because of interest. So I call and check. YUP! It went from $499.45 to $543.04 just within 2 weeks! :surprise: Darn you 21% interest!!

I'm so glad that when our taxes some in (sometime before the 6th) I'm paying it off in full and cutting the darn things up!

Just venting.

**tlenad** · 01-25-2007, 03:09 PM

I know the feeling. I don't get paper statements any more but I check my Credit Card Balance nearly daily along with my checking and savings account (yes I'm a little OCD) and it just kills me when I make a nice big payment and the next day, I'm nearly where I was because an interest charge has it. I figure I'm starting to win though, and in the next few years I won't have to worry about the sharks (the credit card companies) any more.

Then I will just the whale (my special name for Mortgage Interest. It's a lot bigger and a lot slower to pay off just like a whale. I'm actually kind of looking forward to having my very own whale.

**PAVallygrl** · 01-25-2007, 03:09 PM

Nice little $43 profit there for them there in a matter of 2 weeks. Just think by next due dateit will probably be double. Read my post about what Citibank just pulled with me.

**Ani** · 01-25-2007, 03:22 PM

Interest makes me ill as well. Even my mortgage interest (which is somewhat of a necessary evil) makes me sick. Just think how much more quickly my mortgage balance would be going down if most of each payment didn't go to stinkin' interest!

**acidcookie** · 01-25-2007, 04:12 PM

Originally Posted by cheappearls

So I was thinking after I did the "get naked" post (that sound so funny) that what I think the c.c balance is is probably different because of interest. So I call and check. YUP! It went from $499.45 to $543.04 just within 2 weeks! :surprise: Darn you 21% interest!!

I'm so glad that when our taxes some in (sometime before the 6th) I'm paying it off in full and cutting the darn things up!

Just venting.

Wait, interest is added continuously?? I've never had a card that didn't give me one month grace period after purchased for interest. Also, 21% seems awfully high. I bet you could try negotiating it down.

**cheappearls** · 01-25-2007, 04:17 PM

Originally Posted by acidcookie

Wait, interest is added continuously?? I've never had a card that didn't give me one month grace period after purchased for interest. Also, 21% seems awfully high. I bet you could try negotiating it down.

We haven't used the card in about 2 months so there is no grace period.

And heck yeah it's high. It was all we could qualify for when we got it. We were 19 y/o with NO credit history. Once it's paid off we aren't touching it anymore. If we don't have the cash for something, we don't need it.

**acidcookie** · 01-25-2007, 04:27 PM

Originally Posted by cheappearls

We haven't used the card in about 2 months so there is no grace period.

And heck yeah it's high. It was all we could qualify for when we got it. We were 19 y/o with NO credit history. Once it's paid off we aren't touching it anymore. If we don't have the cash for something, we don't need it.

Hm, still seems weird, about the grace period. Mine all just add interest to the final balance.

But honestly, if you're a reputable customer somewhere you can often call and negotiate your interest rate a bit lower. If it doesn't work, you don't lose anything.

http://www.betterbudgeting.com/artic...erestrates.htm

**FrugalMomof3** · 01-25-2007, 05:23 PM

I know the feeling as well, last time i checked DH's CC online it said he owed something like $583, then I checked it again shortly after and went to $600.53, so yeah they make big bucks off the interest, that's why all the CC's in our house are getting paid tomorrow! YAY!

**became4347** · 01-25-2007, 05:32 PM

Umm.... I think you had better call the CC back and find out if any new charges have been added. I have done the math and there is no way you would have almost $44 in interest! On a $500 balance with 21%, even at let's say 1 month, it should be around $9 or so. Call the back and find out what's up.

**cheappearls** · 01-25-2007, 07:56 PM

Originally Posted by became4347

Umm.... I think you had better call the CC back and find out if any new charges have been added. I have done the math and there is no way you would have almost $44 in interest! On a $500 balance with 21%, even at let's say 1 month, it should be around $9 or so. Call the back and find out what's up.

I called and there has been no activity (except for payments) on the account in almost 2 months.

It did this last month too though. It was at $500 and went to $548. Maybe they are charging me more then 21% interest...

**cheappearls** · 01-25-2007, 08:13 PM

Okay I figured it out! The card only have a $500 limit, we couldn't qualify for any more then that (nor do we need any more then that). We got charged a $29 over limit fee. I'm so glad we are paying this off this month and leaving it alone. Credit cards are so aggravating! But I don't know any other way to build up our credit.

**became4347** · 01-25-2007, 08:43 PM

I'm glad you figured it out. Now if you do pay it all off this month, don't forget that next month's bill will still have one more over the limit fee of $29! I know it's ridiculous but I bet that is what will happen. You see, you have already started this billing period over the limit. So they can do that. Just be aware of that and don't chuck your bill next month thinking that the balance is zero.

Now if something happens and you can't pay it all off this month, then I would suggest paying it down to around $456. You will want to pay 43.04 to get to that magic $500 level. Then you will want to go ahead and account for the $29 charge that they will impose. Then you will want to account for about $9-$10 interest. I'm not sure your exact rate and billing method (avg daily balance vs. two cycle avg daily balance). Therefore, I accounted for a $15 buffer there. 543.04-43.04-29-15=456 You may want to pay it even a few dollars lower.

Do you kinda get what I'm saying here? If you can't pay it off, then at least get the balance low enough so that when they do put that $29 fee on the next statement (Feb?) and the interest, you will be under the $500 limit. And then the NEXT month (March?) after that you won't have that charge. You can break this cycle.

See? That's why this keeps happening to your balance. It's a game that you have to play. Don't let them win! Good luck!

**became4347** · 01-25-2007, 08:55 PM

Sorry for rambling but I also meant to address your issue about building your credit. When you do pay this card off, do NOT close the account down! This is a huge mistake that people make! You want to start developing a credit history. Your FICO score takes into account the length of your credit history. It accounts for 15% of your score. If you close it out, you look like a newbie again! You lose all this time with this card. OK OK, cut it up if you want, but don't close it down! Over time, the CC company also will be upping your credit limit which will also help your score. I would not close this card down except for one reason-if they are charging you an annual fee. If that is the case, then I would apply for another card that doesn't charge an annual fee and then I would close the other. But if your CC now does not, then keep the account open!

**cheappearls** · 01-26-2007, 10:55 AM

Originally Posted by became4347

Sorry for rambling but I also meant to address your issue about building your credit. When you do pay this card off, do NOT close the account down! This is a huge mistake that people make! You want to start developing a credit history. Your FICO score takes into account the length of your credit history. It accounts for 15% of your score. If you close it out, you look like a newbie again! You lose all this time with this card. OK OK, cut it up if you want, but don't close it down! Over time, the CC company also will be upping your credit limit which will also help your score. I would not close this card down except for one reason-if they are charging you an annual fee. If that is the case, then I would apply for another card that doesn't charge an annual fee and then I would close the other. But if your CC now does not, then keep the account open!

Yeah, we weren't planning on closing the account. Just cutting up the cards so we can't use them. The problem is I'm only an authorized user on the account so it doesn't count to my score, only DH's (found that out with my free credit report this year). So I'm hoping that once it's all paid off, I can open an account (with a different company) in my name, then add dh. Then maybe charge groceries for a few months, paying it off each month just to build up some good account history.

And I understood what you were saying about the paying it off. We are using tax money for that so it will be paid in full, besides whatever interest/fee is left for next month. Then I need DH to cancel the the payment protection on it. There's no point in paying $5 a month for something we will never use.

Looking on the bright side, at least I realize how much a pain in the BUTT credit cards are now with only a small limit instead of a few thousand.

So I guess in a way it's a great thing we didn't qualify for a higher amount.

**Emjo** · 01-26-2007, 01:16 PM

I hate interest too! It's what really got me moving on paying off these student loans early...when I found out I was throwing away $3 a day on interest I was pretty ticked! Now I'm down to about $2 a day.

My Visa that I got as a student charges 18.5% interest...I haven't bothered to call and have it lowered because we rarely use the thing; if we do it's for convenience and it's paid off right away.