need help with interest calculations

j0s3

hi all,

just trying to understand how interest works:

i have about 2k in a credit card account, currently at 0% but due to my bad timing, the promotional rate will end on sep 1st and the card will shoot to 19% (or thereabouts)

i will be able to pay the card in full at the end of september, so i'm trying to work out the 'damage' in interest

lets say in september my minimum payment is £100. i take it that 19% of that payment will be interest.

but if i pay the balance in full at the end of september, will i be paying 2k PLUS 19% of 2k? a total of £2380?

:eek:

[Deleted User]

19% is the annual rate. In rough terms, if you owe £2k, a month's interest will be 1/12 * 2000 * 0.19 = £32

You could end up paying more than a month depending on how the end date interacts with the statement date - depends on the card.

j0s3

thank you very much! i really appreciate that! i expect that i will have to pay more than a month's interest - but i just didn't know how much that came to

i can sleep again
:T