help with some maths

Spendless

If someone is paying £200 a month as a minimum payment on a cc debt at 6.4% Life of balance, how big is the debt? Don't know if the min payment is 3% OR 5%.
Is it possible to work out the sums that way?
TIA

Fairwinds

Should be £4000 at 5% minimum payment

or £6666 at 3% minimum payment.

If i haven't over simplified it

YorkshireBoy

Spendless wrote:

If someone is paying £200 a month as a minimum payment on a cc debt at 6.4% Life of balance, how big is the debt? Don't know if the min payment is 3% OR 5%.
Is it possible to work out the sums that way?
TIA

The APR is irrelevant if all you want to know is the size of the debt, based on the minimum payments being made.

Depending on the %age minimum payments being made, the approximate 'current' debt (assuming no PPI) will be...

2%.........£10K
2.25%.....£8.9K
2.5%......£8K
3%........£6.6K
4%........£5K
5%........£4K

innovate

Why is the APR irrelevant, YB?

YorkshireBoy

innovate wrote:

Why is the APR irrelevant, YB?

Because this is a 'snapshot' in time. The OP said if someone was paying £200/month. They'll only pay this once. The APR will determine how rapidly the minimum payment (should they continue to pay only that) will reduce over time.

But at this instant, 2% of £10K is £200.