Credit Card balance help please!

hanyan

Someone kindly lent me 2000 from a Virgin Credit card in November 2011. £1000 as card payment and £1000 cash from the card. At the time it was 0% for 6 months. On January 1 2013 I was told I owed £1047.43 which I knew to be correct. On the 8th January I paid £120 and paid £120 on 8th of each month since. Is there anyone who could calculate how much I owe because the person will not provide me with any statements now as they have also used the card and I believe they have got confused as to what I owe. Thanks for any help.

YorkshireBoy

hanyan wrote: »

Is there anyone who could calculate how much I owe

Not without knowing the interest rate, no. And even then it wouldn't be accurate. Unless the loan was made interest free?

hanyan

The interest rate after o% for first 6 months was 17.9%. Hope this helps

StuC75

Opening Balance of £1,047.43, 8 months of interest (so 2/3rd of the 17.9% PA) would be about £125 extra interest to date this year. Less the £960 paid this year on the 8th of each month (not reached september yet).. would equate to £212.43 left to pay..

Prepping a schedule showing interest charged each month (c 1.49%) and being charged prior to payment made would work out to nearer £167.50 left to pay.. (couldnt post the workings here in readable fashion, but if you extend these workings you would see..

1/JAN £1,047.43 (X 0.0149) = 15.62 (Interest) -120 (Pmt) = 943.05
1/FEB £943.05 (X 0.0149) = 14.07 (Interest) - 120 (Pmt) = 837.12
1/MAR £837.12 (X 0.0149) = 12.49 (Interest) - 120 (Pmt) = 729.61
.....
1/AUG £283.28 (X 0.0149) = 4.23 (Interest) - 120 (Pmt) = 167.50
1/SEP £167.50

.. so about £50 difference between the 2 approaches...

redpete

Are you sure the cash withdrawal was interest free? I'd be surprised if interest free periods applied to cash withdrawals.

hanyan

I don't really no the answer to that. I only know that the true outstanding balance left to pay that I was shown was £1047.43 on 1 January 2013. The person will not let me see any statements anymore and although I have been paying 120 on 8th of each month, the person is telling me I still owe a lot more than I think I do.

Hominu

I'd say you would not be paying interest on the £1000 as card payment for the first 6 months, but you are likely to be paying £1000 on the cash from the date of the transaction, and maybe at a much higher rate than 17.9%.

This is the problem with borrowing from a friend, sometimes its easier to just use a licensed credit agency.

McKneff

The interest free period would apply to good bought.

Cash withdrawals are not covered in an interest free deal.

You should have or your friend should have read the terms and conditions.

StuC75

How much more are they quoting? (ask for calculations of how they claim this).. assuming you have proof of your payments, and what they advised and you agreed what you owed at the turn of the year.

Disregard the comments over dates and rates on the cash advances - and work purely from the figures you agree with from the turn of this year..

Chances are they have been using the card since (not your problem), and so have been incurring interest on all of there usage and so carry a balance much higher (as such transactions would have been interest bearing - again not your problem)..

hanyan wrote: »

I don't really no the answer to that. I only know that the true outstanding balance left to pay that I was shown was £1047.43 on 1 January 2013. The person will not let me see any statements anymore and although I have been paying 120 on 8th of each month, the person is telling me I still owe a lot more than I think I do.

hanyan

They are telling me that I owe at the moment £230, when I have calculated it I say I owe £171. I was shown the balance every month with everything else black out up to 1 January. Since then they are refusing to show me anything to show me what I owe. I would not not pay this debt but don't see why I should pay over the odds.

StuC75

Is the £60 worth risking the friendship...

£230 is close to the 'approximate' 8/12ths of a year at 17.9% calculation that i quoted in an earlier example

£170 being close to the other example of monthly interest - but that could be affected by when payment is made in relation to the statement due date and interest calcs.

without know which credit card company and if there has been any changes in the apr rate (some have done this recently). we are assuming that the full balance you have left is just at regular balance rate and not at cash advance rates..

You say that you have paid £120 a month, is this to the friend or direct to the credit card, how does this fit in with the account due date? does it result in any late charges..

For £60 (3% of what you lent) I would likely pay to the Friend to thank for helping you out in such a way, afterall they have taken all the risk in this. Not many MSE'rs would do that..