Credit Card Management - How much debt will incur interest?

Yes debt is bad but really it's about being a responsible with your obligations and with the banks pushing for consumers to spend on credit cards (they get paid more per transaction vs debit cards) the sell line other than points/cashback is the 'interest free' period. Typically this is 55 days..Banks however will not always tell you what debt you owe them that is older than 55 days(simplistically.. reality is 2 financial months max 55 days post transaction i.e.  rounded so it can be a lot less days).. i.e. you then incur interest costs which is where they make their money. In some cases this can me quite a large amount fast..

22Seven being privy to details on the origin of transaction, dates and settlement should thus provide info on this so that clients are able to settle their interest bearing debt prior at the very least thereby reducing the cost of debt. Further cash on debt incurs immediate interest thus this should be accounted. 

Yes currently what you can do is filter on account for the least 55 days excl cash withdrawl/transfers out and then subtract this from the total value to determine what the bank will be charging interest on if not settled.. but it would be greater if you could mark accounts with interest period to get a notice at a variable/set date for payment.

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3 comments
  • Hi Kashif,

    Thanks for sending through your suggestion! I'll be sure to pass it on to the rest of the team.

    There are some complications around something like this, such as delays with merchants submitting transactions to banks and transactions taking a while to move from a pending to a posted state (they're invisible to us while still in a pending state). However, this sounds like a handy idea for the team to investigate at the very least.

    Please let us know if you have any other thoughts or feedback :)

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  • Hi Lydon, One point to keep in mind is that these transactions will be at minimum 25 days old (> 3 weeks). Why this is important is that most merchant settlement and posting of transactions generally happens within 2 weeks.  

    So while this potentially could miss more recent transactions not posted, the minimum age needed to influence the result means a small % of transactions. Delays are with late settlement or posting transaction (merchant settlement agreement, sla vs cost etc).. this could be offset by e.g. adjusting/including reserved amount to get a worse case value.

    Anyway like with most things in the app, conclusions drawn upon do come with some limitations thus for getting an estimate i'd think it would better than the current guestimate approach one has to do.

    PS. Are there any new func/features coming to the app as there does not seem to be much changed in the last few months so kinda curious if people are just actively maintaining only

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  • Hi Kashif,

    Thanks for the additional info!

    There are unfortunately a few service providers that operate outside of the norm and alter the dates of their transactions as long as a month after they were originally made - sometimes even longer. While these are edge cases, they of course raise red flags, as we have to ensure the information we're providing customers is as accurate as possible. However, if we do feel we're able to accurately guide customers we the data we have access to, I do imagine this is something we'd like to do in future. We're continuously working on improving and expanding our Nudges platform, where this seems like it would do great as a potential nudge.

    That bring me to your second question. Over the past few months the team has mostly been working on smaller quality of life improvements that aren't as noticeable as massive new features, but have made a big impact to some customers' user experiences. We've also been making a lot of improvements to our back end systems in preparation for the year ahead. We have plenty in store, which we're very excited about and wish we could share, but we're sworn to secrecy for now! Please do keep an eye out for those exciting features and changes over the months ahead, though :)

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