Say you owe £1000 on a credit card which charges interest monthly at a rate of 1.9% and you only make minimum 2% payment each month
So, month A you pay £20 leaving a balance of £980 and they add £19 bringing back your balance to £999.
Does the Credit Card company then charge 1.9% interest on £999 the next month? If so, isn't that charging interest on interest and is it allowed?
[these are not exact figures but an example based on my current situation with a leading Credit Card company]
yeah, you guessed, I'm trying to deal with debt - help gratefully accepted - please no lectures!
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