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Interest on a credit card balance

Discussion in 'General Discussion' started by robgti, 26 Mar 2014.

  1. robgti

    Hitman

    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%?
     
  2. Jono8

    Caporegime

    Joined: 20 May 2007

    Posts: 34,585

    Location: Surrey

    [​IMG]
     
  3. tom_e

    Man of Honour

    Joined: 26 Dec 2003

    Posts: 27,962

    Location: Shropshire

    Don't forget if she took it out in cash then there'll be a fee to pay as well normally 2.5%ish
     
  4. ShadowMan

    Wise Guy

    Joined: 18 Oct 2002

    Posts: 1,740

    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.
     
  5. robgti

    Hitman

    Joined: 17 Dec 2007

    Posts: 876

    Location: Easington Lane

    That is great thank you everyone.
     
  6. Zethor

    Mobster

    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.
     
    Last edited: 26 Mar 2014
  7. phil675

    Mobster

    Joined: 15 Jan 2005

    Posts: 4,525

    Location: UK

    Awful way to borrow money.
     
  8. randomshenans

    Capodecina

    Joined: 11 Sep 2009

    Posts: 12,723

    Location: France, Alsace

    Want to pay my CC off? I have a corker. You can have it.
     
  9. robgti

    Hitman

    Joined: 17 Dec 2007

    Posts: 876

    Location: Easington Lane

    Trust me it is the last time I am doing this.
     
  10. Jono8

    Caporegime

    Joined: 20 May 2007

    Posts: 34,585

    Location: Surrey

    At least it is better than a payday loan!