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I just made a sizable payment to Discover ($8,700) which they posted on the due date. (Aug. 15) On the 16th, the automated telephone info showed a balance of about $1,100. On the 17th, which was the beginning of the next billing cycle, the automated telephone info showed a balance of about $1,300. Obviously, this meant that I was being charged interest on the balance that I had applied the $8,700 to. When I called them (twice) about this, both of the people I talked to were adament in their assertions that it is appropriate to charge interest from the previous month like this. Since I had been told that my new balance was $1,100, I was surprised that the interst was not based on that figure. Was I wrong to assume this? If not, to whom can I appeal this? I would really appreciate your Foolish advice on this.

HI Bry,

I'm afraid that they are indeed correct in their calculations. While you sent a large payment, it didn't pay off the full amount, so the interest is based on the previous balance.

I unFoolishly, long ago did something similar. For some very stupid reason, instead of sending off the entire amount, I paid off all but just a small amount. To my chagrin, my next bill contained a hefty amount of interest, and when I called, it was explained to me just as it was to you.

From that point on, I made sure to always pay the balance in full so as not to pay any interest at all.

Tony
...but I still am...

Off2Aruba
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