Can someone PLEASE explain to me the fluctuation of INTEREST CHARGES on my CREDIT CARD!?

Question

This is really starting to P*SS me off. I used the entire $2000 limit of my credit card a few months ago (little by little). I did get overdraft charges because I didn't know that the interest was so high. I've not used any more credit the past few months. Here are the past few months (someone please explain what's going on):

July -
Balance - $2042.73 ($42.73 over limit)
Min Payment - $52.00
Paid - $118
Interest - $40.65
Overlimit fee - $39.00
New Balance - $2007.38

August -
Balance - $2007.38 ($7.38 over)
Min Payment - $61.00
Paid - $145.00
Late Fee - $39.00 (1 day late)
Interest - $58.00
New Balance - $1999.34

September -
Balance - $1999.34
Min Payment - $118.00

WHAT THE H*LL IS GOING ON?!?!

Have my minimum payments increased because of the overdraft charges or what?

Why has my interest payment increased?

I'm 21; will I be 40 before I ever pay this off?

Answer 1

Most credit cards have two or three different rates.

Introductory rate (like a 0% or 5.9% or something for a limited time)
Standard rate (your normal rate until you miss payments)
Default rate (when you are late/over the limit they jack up the interest rate).

You minimum payment is based on the interest rate and balance. So if you are in a "default rate" then your minimum goes up.

Credit card companies *love* people like you. They make a ton on all those fees.

Make your payments on time. Have you been late before??? If not, give them a call and see if they'll lower the rate back to the "standard" rate. Worth a shot.

Answer 2

In July you went over your limit. Even tho you paid more than the minimum, you went over your limit again in August -- the interest and fees pushed it back over. And if it wasn't bad enough that you were overlimit two months in a row, you were late.

That was strike three and your interest rate went to the max. The minimum payment is figured as the interest plus a percentage of the principal. Higher interest equals bigger minimum.

Stop charging and start paying down that credit card. Throw every penny you can squeeze out of your budget and throw it at that card. If you stay below your limit and pay on time for a year or so, they may drop your interest back down.

Answer 3

Your minimum payment has probably increased because you had a late payment, not because you overdrew your card. The same goes for your interest rate. Stop using the card and pay it off. It's only two grand- it shouldn't take that long if you apply yourself. Good luck.

Answer 4

save some headache and call the credit company to explain this . this is crazy. they should have an 1800 number for you to call