worried about new vanquis card

Simon7685

Just so you know, this is taken from the site I posted the link to, I have assumed an APR of 49.9% which seems to be about average for Vanquis and a minimum repayment of 4.5% of the balance. This is the result..........

The Bottom Line It'll take you 322 months (that's over 26 years) to pay back £455 if you only pay the required minimum of 4.50%. Over that period of time, you'll pay an additional £2,757.41 in interest.

If you could aford to pay an extra £10 a month towards your credit card debt, it would mean you'd repay it in 38 months (just over 3 years) and you'd save yourself £2,424.49 in interest. In fact, if you could aford an extra £25 a month, you'd repay it in 17 months and save £2,617.61.

Totals (paying minimum of 4.50% per month):
Original debt£455.00Time to clear debt 322 monthsInterest charged£2,757.41Total paid£3,212.41

UsetheFORCE

samsonprince wrote: »

hi its my first month of my new 500 pounds limit vanquis card, havent had a statement yet but my spending on it has reached £455...what i need to know is if i stop spending now am i ok with that figure allowing for monthly charges?

Without knowing the APR, Vanquis's top rate (79.6%) APR equates to about 5% interest each month so on a balance of £450, the MAXIMUM interest will be @ £23 a month.

Bear in mind though, you will also owe interest on the first statement period because Vanquis don't know when they print your first statement that you don't intend to clear it in FULL so don't charge the first months interest until the 2nd statement.

So providing you make at least the minimum payment on time, don't go overlimit or have a failed payment(i.e. DD) then the most interest on your 2nd statement will be £45 BUT it is likely to be far lower as there are many factors that affect it.

What is your APR???