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Debt Collection

Does the interest and finance charge stop each month after a credit card charge off?


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2006-03-10 17:17:27
2006-03-10 17:17:27

No - I am a collector and service primarily unsecured credit card debt. Per the cardholder agreement that was signed with the credit card company, the account holder is often liable for a LARGER interest rate after an account goes into collections. This may not always be the case, but I rarely see credit card collections that have interest rates lower than 18%. Finance charges are not often applicable when the tradeline has been closed and charged off into collections.

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finance charges are imposed on unpaid balances each month. To determine the monthly finance charge rate, the annual rate is divided by 12

No. A credit company can not charge you interest on top of interest. With that said if you have a balance of $1000 and the company charges you $20 interest for that month. Next month a new balance is created $1020 then the company can charge you interest on $1020.00 if you fail to pay the $20 interest at the minimum. Interest is a finance charge and so long it does go over 59.9 per cent it is legal even on closed accounts. This is called accrued interest. If your account is closed due to unforseen of financial circumstances contact the credit and work out a payment arrangement and request interest to be stop. Many creditors will do so if the amount is paid in a timely manner usual 6-9 months. Otherwise consumer proposal is an option.

Katie had am unpaid balance of 1458.25 on her credit card statement at the beginning of October. she made a payment of 330.00 during the month. if the interest rate on Katie's credit card was 2% per month on the unpaid balance, find the finance charge and the new balance on November 1.

The finance charge would depend on the interest rate and the number of months it will take you to repay the loan.

By paying the entire balance on the card, in one shot, you avoid interest rates. There's no other way.Credit cards are designed & prepared to bill you interest, or finance charges (whatever you want to call it) every month until you debt is paid in full. The sooner you pay off the debt to the credit card, the faster you eliminate fees, interest rates, finance charges etc.

They can get profit to those who are in need of financial assistance and those who do not update their monthly due payments, where finance charge will be charge to the card holders. +++ Put more simply, they collect the interest on the loans. Each time you use a credit-card you are buying the goods or services by loan. Although credit-card companies do not levy interest on 100% repayments within one month, they do so on any debt carried beyond that.

Capital One charges interest fees when the balance on the credit card is not paid in full each month. The user will cease to pay interest fees when the balance on the credit card reaches zero.

Finance charges will be approximately $44 on $2000 at 27% depending on how your bank computes finance charges.

Compound interest is when interest is charged on the principal plus the interest. An example is a credit card debt. If you carry a balance from month to month you are charged interest on the total amount owed including the interest from previous months. Simple interest is calculated on the amount borrowed over a fixed amount of time and does not charge interest on the interest.

It means they charge you 19.99% interest annually. $1000 of average daily balance would cost you $199.90 in interest. You do not pay any interest on a credit card if it is paid of in full every month, but the moment you do not pay it off in full, they will charge you interest on every purchase from the day of purchase.

aaron had an unpaid balance of 1177.79 on his credit card statement at the befinning of April he made a payment of 430 during the month and made purcahses of 36.02 if the interest rate on arron credit card was 4.5% per monthon the unpaid balance find his finance charge and the new balance on may 1

Get a gas credit card charge $300.00 a month and pay it in full every month.

It's either accrued interest (on your outstanding balance) - or a service charge for using the card.

Believe it or not, it can hurt your credit score. You should charge something on it at least once a month and pay it off immediately to avoid interest charges.

Charge card and credit card offers you a facility to spend a certain amount and at the end of the month you can pay a specific minimum amount and revolve your credit for the next month by paying some interest on the remaining amount that is still to be paid and remains out standing. Charge card offers you a facility that the amount spent will be directly debited from your account and you can not revolve the credit. Charge card is a facility provider which is given to their costomer to make their payment behalf of the costumer

A charge card you have to pay the full balance at the end of the month. You can buy as much as you want, but you must pay at the end of the month. A credit card will give you a limit of $xxxx and you can pay that off over years and build the interest until you can never pay it off. So essentially you can buy a yaht with a charge card but not a credit card. The downside to the charge card is the fact that if you cant pay up in full every month, they will gut you worse than a credit card would. Also, charge cards carry an annual fee for their generous rewards points and the risk they incur by backing you.

Most people think credit card and charge card are the same thing. This is not entirely correct. The difference is that the charge card is a special kind of credit card that you have to pay the entire balance off each time you receive a bill. You cannot make a partial payment, and there is no interest involved. With a credit card, you can treat it like a loan to yourself. You can make a partial payment when the statement comes in, and then pay interest on the balance each month until it is paid in full. Some people just keep making partial payments and pay interest on credit cards for years and years.

At 17%... you would pay 136 in interest at the end of the month in addition to the 800 outstanding. UNLESS you mean an ANNUAL rate of 17% - in which case the monthly interest payable would be 11.33

Credit card companies use several methods to calculate interest. There can be one or two billing cycles per month. Interest can be charged on the daily balance, new purchases, etc. You should refer to the "How finance charges are calculated" section of you billing statement.

The longest zero interest period offered by any no interest credit card in the UK is about 6 months. This means that within this month, one will not pay any interest on the money spent on the credit card.

{| |- | A revolving account is an account that requires a minimum payment each month in addition to a service charge. When the balance decreases, the service charge/interest also declines. To learn more about credit terms you can visit |}

Whatever they want to charge. The only legal requirement is that they have tomake sure that you know the interest rate before you borrow the money.

With a credit card or charge card - the main pit-fall is interest. If you don't repay the whole outstanding balance before the end of the month, the card company willl charge you interest on the remaining balance. Charge-cards are often limited to one type of store - and charge higher interest than a 'standard' credit card. Debit cards can only be used if there is already enough money in the linked bank account to pay for the goods you're buying immediately. For example, if you try to buy something worth £100, and your account only has £75 in it - the transaction will fail.

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