Credit Card Novice Needs Help

Maclachlan

I have a credit card with a large UK Bank.

My 0.00% Introductory rate is coming to an end in November.

My Variable rate of interest on purchases is 21.95% P.a. with a Typical rate on the card of 21.95 percent APR

For the sake of this example lets say my balance is 800.00 pounds.

Does this mean that my minimum monthly payment for the card when the introductory offer expires will be roughly £175.60? (21.95 percent of 800)

I'm very confused about this, I don't now if the total amount of interest on the card will be paid over the year making my monthly payment closer to £14.63 (this being £175.60 paid over 12 months)

if someone can give me a jargon free explanation of what I can expect to pay on the numbers given in this example then I would be very very grateful. I know this might seem like a very basic question to ask so apologies to the community at large, but any help would be brilliant.

stephane_2

The apr you quoted is the annual one so to know a rough figure you would need to divide that apr by 12, it would also depend what is the % of your minimum monthly payment, so let say it was 3%, your minimum monthly payment would be £24 and would decrease over the months if you were not going to use the card but also if you decided to pay more than the minimum payment...on your first payment interest would be about £14

DiggerUK

Maclachlan,
Best that you learned from the beginning that credit cards are the worst way to borrow money.
Jargon free explanation is "that you will pay through the nose if you borrow on a credit card". Simples.

Best way to use a card is as a replacement for cash in your pocket, and clear by Direct Debit each month. The old rule about living within your means is an oldie but a goodie.
For now just don't worry about the percentages in front of you, and pay your card off. Simples.

Best of fortune.

stephane_2

DiggerUK wrote: »

Maclachlan,
Best that you learned from the beginning that credit cards are the worst way to borrow money.
Jargon free explanation is "that you will pay through the nose if you borrow on a credit card". Simples.

Best way to use a card is as a replacement for cash in your pocket, and clear by Direct Debit each month. The old rule about living within your means is an oldie but a goodie.
For now just don't worry about the percentages in front of you, and pay your card off. Simples.

Best of fortune.

Not true, if used correctly some credit cards can be the cheapest way of borrowing money

moonrakerz

stephane wrote: »

Not true, if used correctly some credit cards can be the cheapest way of borrowing money

(my highlighting)


A true politician's answer !

stephane_2

moonrakerz wrote: »

(my highlighting)


A true politician's answer !

:rotfl::rotfl::rotfl::rotfl::rotfl: