working out APR

borich_planner

borich_planner

borich_planner

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Joined
16 Feb 2009
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1,505
My g/f has a o/d of £1500 and when her student account comes to a end, she can go to a additions account with £300 free o/d and the rest charged at 16.9%. As well as that interest she has to pay 5 a month for the account.

The second option stay in her current account which will go up to 19% apr but has no monthly fee.

What will the monthy interest be on the £1300?

Borich
 
Jestar has calculated it using basic interest. The fact is it's going to calculated using compound interest but there's not going to be much difference between the two amounts since is quite a small total
 
why does she not just get the account converted into a graduate account like everyone else then she'll keep the over draft and itll be reduced at a far slower rate...
 
Better yet apply for a credit card with zero interest for over a year and aim to pay off the £1300 over that year or at least reduce the debt by the interest she would have paid on her overdraft.
 
Dj_Jestar said:
Don't get a credit card. That's the best advice anyone can give and/or adhere to. :p
Click to expand...

Then you get no credit rating. Not good

The best advice I can give is have one but remember to pay it off before the end of the month. (its better than going into the red and getting charged 30 squid anyway!)
 
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