Can't work out these 'minimum monthly repayments'!

hopperson

I've had a 'dormant' credit card for a few years (by 'dormant' I mean a card I no longer use, just pay off a regular amount each month).
Recently I got married and my wife and I agreed to use the card to help pay for the wedding (a modest affair, btw).
However, as with most credit card users, the balance shot up from around £200 outstanding, to £2,000+!

My query is how the 'minimum amount due' is worked out. Last month it was just £7.30, this month... £43.00!!

Can someone explain!??

Paul

tomsco

hopperson wrote: »

I've had a 'dormant' credit card for a few years (by 'dormant' I mean a card I no longer use, just pay off a regular amount each month).
Recently I got married and my wife and I agreed to use the card to help pay for the wedding (a modest affair, btw).
However, as with most credit card users, the balance shot up from around £200 outstanding, to £2,000+!

My query is how the 'minimum amount due' is worked out. Last month it was just £7.30, this month... £43.00!!

Can someone explain!??

Paul

Without knowing which card, we can't tell you. Check the back of your statement or the summary box online.

I know with a bunch of mine it's 1% plus any interest and fees. Not that I have any interest or fees.

dzug1

It's usually a percentage of the balance - what percentage varies from card to card

molerat

Don't forget that interest is being charged from the date of purchase on that new £1800 so those figures look ok.

CLAPTON

hopperson wrote: »

I've had a 'dormant' credit card for a few years (by 'dormant' I mean a card I no longer use, just pay off a regular amount each month).
Recently I got married and my wife and I agreed to use the card to help pay for the wedding (a modest affair, btw).
However, as with most credit card users, the balance shot up from around £200 outstanding, to £2,000+!

My query is how the 'minimum amount due' is worked out. Last month it was just £7.30, this month... £43.00!!

Can someone explain!??

Paul

if you owe 2000 at say 25% APR (a fairly typical interest rate) then, if you only pay 43 per month then it will take you about 10 years to pay off the debt and you will have paid a massive £3,000 in interest

best to start to pay a lot more and clear that debt asap.