How much would I need to pay

crazymumof5

to actually reduce my balance. I have a Vanquis Visa (I know I know ) which has a limit of £2250 Minimum payment is usually £110 (interest estimated to be £113) but I always pay £130 and the balance on my last statement was £2197.22 .I have just paid off 2 Shopacheck loans (despite my collector begging me to at least keep one 'just in case' ) and a Capital One CC so have £100 extra a month to pay ,will this make enough of a difference and actually reduce the balance by a decent amount and not just a few quid??

oops meant to say that getting another card and transferring isnt an option due to bad credit rating :0(

m00m00

paying the extra 100 a month on your vanquis will make a massive difference. You are currently only eating into your capital with a very small amount, so each month you have almost the same amount of interest. By making inroads into the capital, the interest will reduce, and your payments will therefore pay off more capital each month.

crazymumof5

Thankyou ,this is the only debt that I havent been able to reduce significantly .I have paid 6 off in total in the past 2 years just need this one gone :0)

chattychappy

Yep massive difference. Based on the figures you give for estimated interest/balance, very roughly:

Pay £130 a month: 40 months to pay off and £2700 interest in total
Pay £230 a month: 16 months to pay off and £865 interest in total

If you can post your exact interest rate, I can correct these figures. I assumed 5%/month, 80% APR.

Assumes no further spending.

crazymumof5

purchase interest 4.516% monthly /54.190% yearly
cash interest 4.996% monthly/59.950% yearly

definitely NO further spending , new gold card not validated and cut into tiny pieces along with standard card which is now out of date anyway :0)

chattychappy

On the basis of 4.5%:

£130 repayments: 36 months, £2025 interest
£230 repayments: 15 months, £740 interest

The annual figures they give appear not to be APRs because they are not compounded.

Anyway those are the figures! I think I'll apply for Vanquis so I can feel I'm saving a lot of money by not using it...

Good luck seeing the back of it.

crazymumof5

LOL!! Good idea ;0):D

thanks