CC Interest Rates - Working Out

pickleiamin

Hi Guys

Hope you have all had a good Christmas.

I am in the process of updating my spreadsheet and I was adding my CC's that I am paying off to it.

I would like to be able to calculate my interest and my payments in the future. I have used the snowball calc and looking at my CC I can see which one has the highest intrest and therefore which one to pay off first. At the moment I am paying off the minimum on one card and a little more on the others and want to accuratley shift the cash appropriatly.

I have a question regarding intrest payments. On two cards I got cash out, I know it was a bad thing, and I am not here for a ticking off, I got that on the DFW board :rotfl:

So, On my Barclaycard I have two interest rates one being cash, one being purchases. I have read/heard that the interest is calculated on the larger (that being the cash).

So, for the purpose of my spreadsheet, do I have to get the total amount of cash taken out, calculate the Interest % on that and add that to my interest on my purchases?

OR

Is this a silly idea? How would I know for example that ill my cash advances had been paid off? I have really confused myself :S

CLAPTON

you pay the cash rate on the cash withdrawn and the purchase rate on the puchases

previously any payment made were allocated to the lower APR debt i.e. the purchases until they were paid off and only then did the payments get allocated to the cash debt

however that has now changed and the payments will now be allocated to the debt with the highest APR (i.e. the cash) until it has been paid off then then the payments will go to the purchases

pickleiamin

Thanks Clapton.

I understand that. I was hoping to get my spreadsheet updated to calculate like the snowboard calculator and to update when I add a payment.

However, it looks like I hall just use the snowball calc.