Interest on a credit card balance

Associate
Joined
17 Dec 2007
Posts
876
Location
Easington Lane
I recently borrowed £850 off my partner which she put on her credit card.

I borrowed the money on the 24/02/2014 and paid back £325 on the 28/02/2014.

I will be paying back £175 at the end of each month until the balance is clear then paying a 1 off payment for the interest.

Can any one tell me roughly what interest I will owe when the APR is 39.9%?
 
Associate
Joined
18 Oct 2002
Posts
1,796
About £70 plus any fees etc.

Interest charged will be reduced per month if she keeps clearing off the balance. You will clear the £850 after 5 payments including the £325 paid and should see a total outstanding balance for month 6 of about £70.
 
Soldato
Joined
13 Nov 2013
Posts
4,294
The interest will be ~65 pounds.

For future refence, how to calculate interest for dummies:
You start with 850 debt. 325 first payment, followed by 175*3.

First month starts with a debt of 850*0.39(interest rate)/12 = 27.6 (nominal interest)
Second month 525*0.39/12 = 17.06
Third month 350*0.39/12 = 11.3
Fourth month 175*0.39/12 = 5.6

Total 61.56.

The total paid interest will be a bit higher because your balance decreases by the amount you pay minus interest.
 
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