Help again

pmf63

I don't know for sure but when there are two different rates on the same balance CC often pay off the portion that is in favour of them getting more money so if you calculate at the higher rate this will give you the worse possible scenario.

The calculation would look something like this:

1.82/100 then multiply by the outstanding amount (4043.88) = £73.60 next payment.

Nicky321

pmf63 wrote: »

I don't know for sure but when there are two different rates on the same balance CC often pay off the portion that is in favour of them getting more money so if you calculate at the higher rate this will give you the worse possible scenario.

The calculation would look something like this:

1.82/100 then multiply by the outstanding amount (4043.88) = £73.60 next payment.

Not sure but I thought CC had changed so any payments made went towards clearing the highest APR% balance.


1.82/100 then multiply by the outstanding amount (4043.88) = £73.60 next payment.
1.82/100 then multiply by the other outstanding amount (3629.46) = £66.06

73.60+66.06 =139.66

still leaves me confused lol, I just have to work it out as the virgin balance has the 2nd Highest APR therefore I need to work on clearing the highest APR with any excess money and paying the minimum on the others. Will keep working on it unless anyone (including virgin) manage to get back to me with the solution. Thanks for all your help so far

pmf63

No, your average interest is around 1.3%

Balance of previous statement £7637.07
02/03/11 Payment Received £ 83.97 CR
14/03/11 Interest Charged £ 120.24
New Balance £7673.34
Minimum Payment £ 125.24 (Roughly 1.63% of outstanding balance)

1.30/100 multiplied by 7673.34 = £99.75
1.63/100 multiplied by 7673.34 = £125.08

So the absolute max at the highest rate is £125 I would expect somewhere around your average 1.3% about £100 One or the other NOT both!

In order to calculate exactly you would need exactly how much is being charge at what % AND know the order they pay off. This is an estimation based on average % rates. If you ring them they should be able to tell you what your next payment is going to be.

Nicky321

I have messaged them from my account asking the questions so I await their reply. Thanks again for the help.

Nicky321

Virgin have replied.

Thank you for your query. I confirm your balance transfer is on 18.6% p.a, this rate is applicable to £1,285.78 of your existing balance. Your money transfer is on 20.6% p.a, this rate is applicable to £6,387.56 of your existing balance. Please note, with effect from 1 April 2011, we are changing the way we calculate minimum payments on our accounts. We are replacing part of the calculation with a new element which works out 1% of your borrowing, plus the range of other factors that make up your monthly credit card bill (for example, interest, card i.e. annual fees and late, overlimit or other default charges when calculating how much you need to pay. We are making this change to introduce a more consistent approach for minimum payments across all of our customer accounts. The actual effect will depend on how you use your account, but for the majority this should mean repaying more each month, in turn paying less interest overall and paying off balances over a shorter period of time. I trust this clarifies the situation. An additional benefit of your card is that, as you have provided us with your mobile telephone number, you can keep up to date with your account using our mobile banking text service. Send BAL, TRAN or BILL to 83838 for up to date balance, transaction or payment information. Or, send the same request to 0786 0010010 and take advantage of any text message services included in your mobile plan. This is a free service available within the U.K. however, standard Network charges may apply. Kind regards.

pmf63

Nicky321 wrote: »

Virgin have replied.

Thank you for your query. I confirm your balance transfer is on 18.6% p.a, this rate is applicable to £1,285.78 of your existing balance. Your money transfer is on 20.6% p.a, this rate is applicable to £6,387.56 of your existing balance. Please note, with effect from 1 April 2011, we are changing the way we calculate minimum payments on our accounts. We are replacing part of the calculation with a new element which works out 1% of your borrowing, plus the range of other factors that make up your monthly credit card bill (for example, interest, card i.e. annual fees and late, overlimit or other default charges when calculating how much you need to pay. We are making this change to introduce a more consistent approach for minimum payments across all of our customer accounts. The actual effect will depend on how you use your account, but for the majority this should mean repaying more each month, in turn paying less interest overall and paying off balances over a shorter period of time. I trust this clarifies the situation. An additional benefit of your card is that, as you have provided us with your mobile telephone number, you can keep up to date with your account using our mobile banking text service. Send BAL, TRAN or BILL to 83838 for up to date balance, transaction or payment information. Or, send the same request to 0786 0010010 and take advantage of any text message services included in your mobile plan. This is a free service available within the U.K. however, standard Network charges may apply. Kind regards.

OK, based on those figures then ... expect your next bill to ask for £129.79

Nicky321

pmf63 wrote: »

OK, based on those figures then ... expect your next bill to ask for £129.79

Thanks, could I ask you to put the calculation down to how you got to £129.79?
I also take it my minimum payments are going to increase before they start coming down?

pmf63

Nicky321 wrote: »

I also take it my minimum payments are going to increase before they start coming down?

Their reply does imply that yes. Although I don't know by how much, or how to calculate the changes yet.

18.6%pa <=> 1.55%pm so 1.55/100 * 1285.78 = £19.93
20.6%pa <=> 1.72%pm so 1.72/100 * 6387.56 = £109.86

£19.93 + £109.86 = £129.79

<=> this symbol is a mathematical symbol meaning 'is the same as'

Hope this help you to get yourself sorted.

Nicky321

OMG, this just gets worse instead of getting better

Another message off virginmoney
"Thanks for getting in touch with us. I can help you with that straight away. Just to clarify, your minimum payment will now be calculated as 1% excluding any interest charges. Therefore as you are being charged around £120.24 worth of interest, your minimum payment will now increase to around £200.00 per month. Every month 1% of your balance will be paid resulting in your interest decreasing every month as well. Any payments you make onto your card will be allocated to the balance accruing the highest rate of interest fist. I trust this clarifies your query. Kind regards."

So going off the information above in previous posts can anybody help me work this out? going of an Outstanding Balance of £7,673.34

pmf63

Nicky321 wrote: »

OMG, this just gets worse instead of getting better

Another message off virginmoney
"Thanks for getting in touch with us. I can help you with that straight away. Just to clarify, your minimum payment will now be calculated as 1% excluding any interest charges. Therefore as you are being charged around £120.24 worth of interest, your minimum payment will now increase to around £200.00 per month. Every month 1% of your balance will be paid resulting in your interest decreasing every month as well. Any payments you make onto your card will be allocated to the balance accruing the highest rate of interest fist. I trust this clarifies your query. Kind regards."

So going off the information above in previous posts can anybody help me work this out? going of an Outstanding Balance of £7,673.34

What that means, if I understand it correctly, is calculate your interest exactly how we did earlier and then add 1% of your balance to it. So your interest was £120 + (1/100) * balance = payment

120 + 0.01*7673.34 = £196.73

I think you need to talk to them!