interest help please

Easypd

Through the forums, i have managed to reclaim PPI and have a lump sum to clear most of my credit cards. I thought i would look to see which is the highest interest and clear that one first.

Virgin: 1.2916%
Capital one: 20.83%

Is this right? I seem to remember there is several ways of showing interest rates, are they just showing it in 2 different ways. If not, then the capitol one is definately going! Very confusing.....

Jamie

YorkshireBoy

Virgin is a monthly rate
Cap One is an annual rate

This calculator will let you compare like-with-like...

http://www.stoozing.com/mon2yr.htm

Someone will no doubt give you a formula to work it out for yourself, but I'm guessing that wouldn't help being as you didn't twig one was monthly and one was annual?

Easypd

YorkshireBoy wrote: »

Virgin is a monthly rate
Cap One is an annual rate

This calculator will let you compare like-with-like...

http://www.stoozing.com/mon2yr.htm

Someone will no doubt give you a formula to work it out for yourself, but I'm guessing that wouldn't help being as you didn't twig one was monthly and one was annual?

Thank you. Not true, i can handle quadratic equations and so i expect i could work it out. i did recognise they were likely to be shown differently, just wasnt sure the different ways of showing them. thanks for your help.

Jamie

Easypd

So the capital one is the first one to pay off according to the calculator.....

Thanks again.
Jamie

tlh858

The quick and easy way - monthly rate x13 is the annual rate.

Although it's not exact, it's good enough for most purposes.

Eonel

If you prefer this in quadratic form it would be 0x^2 +13x - 0