Marbles card - why isn't my interest reducing?

harley92_2

Hi Guys,

Firstly I am sorry if this is a really basic question but interest rates and how they work leave me dumbfounded. I have an outstanding balance on a marbles credit card ( card destroyed and not used at all over 4 years ago as I got into debt and have been paying it off as much as possible). My current balance is £2639.76, and I am paying a set £125 off each month (Min repayment would be around £66). This months interest was £48.10. I have looked over the last 6 months statements and this months interest is higher than the last 4 - it has varied from £51.66 to £43.51. Interest being charged is purchases at 0.048% per day (18.95% pa), cash 0.059% per day (23.95%). My question is, will this interest ever start to decrease, or will I be paying around the £40 - £50 mark each month until cleared?

Thanks.

lisyloo

it has varied from £51.66 to £43.51

If you are not spending then the only reason I can think for this is a variable number of days in the month they are charging for.
So you should find February is lower.

My question is, will this interest ever start to decrease, or will I be paying around the £40 - £50 mark each month until cleared?

It should be gradually decreasing (although variations in month length may mask this) as your capital is decreasing and hence your interest on it in decreasing.
I am assumiing your interest stays at the same rate.

If they try to put your interest rate up then don't accept it.
You have the right to refuse the new contract/rate. This means you can't spend on it, but that won't affect you as you aren't spending anyway.