Question about Next account

digitalphase

I have a Next account. I'd like to use it to buy some work clothes as I have just accepted a job offer (yay!). I won't be getting paid until September, so will have to get the clothes on credit as I don't have any available cash.

My question is: if I buy some clothes now and pay it off over two months, how much interest will I have to pay and what sort of minimum payment would it be if I spent £100? The APR is 26.49% variable, think it's 2.014% each month. Would that be £51 to pay it off over 2 months? Not that much is it? Or have I worked it out wrong :rotfl:

ILW

digitalphase wrote: »

I have a Next account. I'd like to use it to buy some work clothes as I have just accepted a job offer (yay!). I won't be getting paid until September, so will have to get the clothes on credit as I don't have any available cash.

My question is: if I buy some clothes now and pay it off over two months, how much interest will I have to pay and what sort of minimum payment would it be if I spent £100? The APR is 26.49% variable, think it's 2.014% each month. Would that be £51 to pay it off over 2 months? Not that much is it? Or have I worked it out wrong :rotfl:

If the rate is 2% per month you will pay £2.00 per month on £100.00 borrowed. the minimum payment is probably about 4% or £5.00 pounds, it will say on you agreement.

YorkshireBoy

In round figures, approx £4 interest over the two months.

digitalphase

Excellent, that's not bad at all!

Thanks for your help - I'm glad I worked it out right :rotfl:

Any

I wonder how did you manage to get a job...

anopetse

I wonder how did you manage to get a job...

That's a bit harsh!

Well done to digitalphase on getting a job :T

Any

anopetse wrote: »

That's a bit harsh!

Well done to digitalphase on getting a job :T

I am not being funny, but do you seriously think that this person should have credit cards? Have a look at her signature...

Firstly you have to make youself familiar with "how it works" and "what the consequences are" and then apply for any new product. What ever should it be.

This is exactly why people get into financial problems.

OP please, do some looking into before you start spending on your cards

Tweetinat

Any wrote: »

OP please, do some looking into before you start spending on your cards

And that's precisely what they are doing!! Asking how much interest they're likely to pay before they make their purchases.

Any

Tweetinat wrote: »

And that's precisely what they are doing!! Asking how much interest they're likely to pay before they make their purchases.

What they need to know is how to calculate it.. Not how much is payable on each purchase.

Tweetinat

Any wrote: »

What they need to know is how to calculate it.. Not how much is payable on each purchase.

Respectfully disagree here - I don't think knowing the calculation itself is of great importance. Knowing the implication (i.e. what you'll end up paying) is of more use to the majority of people.

I would count myself as quite financially savvy - but wouldn't know off hand how to calculate the monthly interest on a credit card. I personally can work it out and make a rough estimate (as the OP stated that they made a rough guess) but if I wasn't particularly good at maths then I'd just ask someone who does - again, much like the OP did. I really don't think that being able to understand interest calculation is a pre-requisite for taking out a credit card/account card.

Any

Tweetinat wrote: »

Respectfully disagree here - I don't think knowing the calculation itself is of great importance. Knowing the implication (i.e. what you'll end up paying) is of more use to the majority of people.

I would count myself as quite financially savvy - but wouldn't know off hand how to calculate the monthly interest on a credit card. I personally can work it out and make a rough estimate (as the OP stated that they made a rough guess) but if I wasn't particularly good at maths then I'd just ask someone who does - again, much like the OP did. I really don't think that being able to understand interest calculation is a pre-requisite for taking out a credit card/account card.

I disagree... Applying 2% to £100 balance is not a science. It is very basic math.

How do you want to understand cosequence without understand the amount? You cannot borrow unless you know you can repay. Unless you know how much to repay you don't know whether you can afford it?

Also from what she was saying she doesn't understand the principle at all.
Read her first post properly and you will find that.

I am sorry, maybe my first post was a bit harsh, but nothing gets me going more then people getting into a debt - which can be extremely dangerous - without understanding.