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cant work out the ineterst charges

hi every one

would be really grateful if some one could help me

this is my last debt, other than my mortgage to pay!!!!!! :j

i made the mistake of getting a HFC loan some years ago, but once becomming a member here, i have thrown any spare money at paying my debts back, i have one more to pay, and plan to do that tomorrow, all of the outstanding balance, (good sale on ebay!!)

i have 375.05 left to pay on this loan

i paid just £30.00 last month (as i wanted to pay off something else )

just looked at the statement and it reads as follows

outstanding £375.05
payment £30.00
interest £8.25

theres no mention anywhere of the interst rate and never had the nerve to work it out before, but now as i am paying it off, i dont mind knowing what it is

but i am not to clever with interest rates and how to work them out

on the back it does say, interest is occurred daily

thanks for all your help in advance :D
the more people i meet!! the more i like my dog !!;)

Comments

  • roswell
    roswell Posts: 2,447 Forumite
    this works out at 2.2% a month so 26.4% a year ... if my maths are right can someone confirm please.
    If it doesnt pay rent sell it.
    Mortgage - £2,000
    Updated - November 2012
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    I agree its approx. 26.4%

    regards
    EU tariff on agricultual product 12.2%
    some dairy products 42.1% cloths 11.4%
    EU Clinical Trials Directive stops medical advances
  • DavidHM
    DavidHM Posts: 481 Forumite
    If it's HFC interest free option through Dixons/Currys/PC World it's 29.5% APR... don't forget that the interest over the year is charged on the reducing balance.

    It is 2.2% per month but the actual total interest is going to be 29.8% as interest is charged on the interest although you then have to calculate APR, which is more calculated as you need to take into account the reducing balance... which is more complicated than my maths will allow me to do. :mad:
    Debt at highest: September 2003 - £26,350 :eek:
    Debt now: £14,100 :rolleyes:
    Debt free day: October 2008 :beer:
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