Description

Can’t pay expiring plan

### **Can’t Pay Expiring Plan: Advice and Reassurance**

Are you struggling with paying off an expiring plan and worried about incurring interest? You’re not alone. Many of us have faced similar situations, especially when dealing with payment plans and financial institutions. Let’s break down the issue you’re facing and explore possible solutions together.

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#### **Understanding the Problem**

You have two payment plans:
1. A long-term plan that expires in 20 months.
2. A shorter plan of £175 that expires on **10th July**.

Your goal is to pay off the £175 plan in full before it expires to avoid interest. However, when you tried to make a payment over the phone, you were told that:
– PayPal’s system applies payments to the longest-running plan first (in this case, the 20-month plan).
– If you wait until after the 10th of July and make a payment during your next billing cycle (on the 21st), the payment will be applied to the shorter 4-month plan.

But here’s the confusion: your statement clearly states that **interest of 19.9% will begin to apply if the £175 plan isn’t paid off by 10th July**. This contradicts what the advisor told you. Are you at risk of being charged interest, or is the advisor correct?

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#### **What You Can Do**

Here are some steps and tips to help you resolve this situation:

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### 1. **Double-Check PayPal’s Payment Allocation Rules**
– PayPal’s system typically applies payments to the oldest outstanding balance first. This means that if you make a payment, it may automatically go toward your 20-month plan rather than the one expiring on 10th July.
– If you want to pay off the shorter plan first, you may need to do so manually or contact PayPal to request that the payment be allocated specifically to that plan.

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### 2. **Try Making a Manual Payment Online**
– Log into your PayPal account and check if you can manually select which plan to pay off. Some users have reported success with this method, though it may not always be straightforward.
– If you can’t see an option to choose the plan, consider reaching out to PayPal’s customer service again and ask them to apply the payment directly to the £175 plan.

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### 3. **Contact PayPal Again for Clarification**
– If the advisor you spoke to gave conflicting information, it’s worth calling back and asking for further clarification. Specifically, ask:
– Will interest be applied if the £175 plan isn’t paid off by 10th July, regardless of when you make the payment?
– Is there a way to ensure that your payment is applied to the shorter plan before the expiration date?

If the advisor seems unsure, don’t hesitate to escalate the issue to a supervisor or someone who can provide a definitive answer.

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### 4. **Pay Off the £175 Plan Before 10th July**
– To avoid interest altogether, consider paying off the £175 plan in full before the 10th of July. If you have the funds available, this is the safest option.
– If you’re unable to pay the full amount, make sure to pay as much as possible before the deadline to minimize the remaining balance and reduce the interest charged.

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### 5. **Understand Your Billing Cycle**
– If you do end up waiting until your next billing cycle on the 21st, double-check how PayPal applies payments during that cycle. If the advisor is correct, and no interest is applied during the 16-day grace period, you may still be able to pay off the plan without extra charges.
– However, based on your statement, it’s unclear whether this grace period applies. To be safe, assume that interest will start accruing after the 10th of July unless you’ve been explicitly told otherwise by PayPal.

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#### **Key Takeaways**

– **Act Quickly:** If you have the funds to pay off the £175 plan, do so before the 10th of July to avoid interest.
– **Clarify PayPal’s Policies:** If you’re unsure about how payments are allocated or when interest is applied, contact PayPal for clear, written confirmation.
– **Review Your Statements:** Keep a close eye on your account activity to ensure that payments are being applied correctly and that no unexpected interest charges appear.

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#### **Has This Happened to You?**

If you’ve faced a similar situation with PayPal or another payment provider, share your experience in the comments! Your insights could help others navigate this confusing process.

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By taking proactive steps and seeking clarity from PayPal, you can avoid unnecessary interest and ensure your payments are applied correctly. You’ve got this—stay calm, stay informed, and take control of your finances!