Interest Rate Help

stinabean

Hey everyone,

Am having some trouble working out how much interest I'll be charged - maths is not my strong point at all!

My partner owes £583 on a card. It has been 0% interest for six months but it will be 29.9%APR at the end of January and as far as I'm aware, it will backdate and apply the interest to the 6 month 0% period.

Can anyone please tell me the (I'm sure) simple math equation so I can work this out? We are unable to pay this off in time to avoid the charges, so I want to be able to work out how much interest we'll owe dependent on how much we can pay off etc.

Thank you for your help! :beer:

pogg000

why do you think the interest will be backdated?

stinabean

It's an Argos card and I think that's their general rule? If not then fantastic, but I think unfortunately I think I've read that on a statement somewhere

YorkshireBoy

Very roughly 15% of the average balance over the 6 month period.


So if she started out with £700 it'll be (again very roughly)...


£642 x 15% = £96.30

20aday

stinabean wrote: »

It's an Argos card and I think that's their general rule? If not then fantastic, but I think unfortunately I think I've read that on a statement somewhere

You'd be correct in thinking you're going to be charged Deferred Interest on a Buy Now, Pay Later plan with the Argos Card:

The applicable APR for this Plan is noted on the front of the statement.
Buy Now, Pay Later Plans (up to 12 months) offer specified periods to opt-out of interest. Deferred interest will be payable if you do not pay the balance by the due date.
No repayments are necessary during the Buy Now, Pay Later Plan period, except for any insurance premiums which are due on the balance. After that you pay the minimum payment as detailed in your agreement.

grumbler

6-months' interest on £583:
583*((1+0.299)^(6/12)-1)=81.47

stinabean

Thanks Grumbler, so January would be what I owe plus £81 in charges.. then this would go to a smaller charge every month?

Really sorry for silly questions, just want to make sure I'm doing this right on the smaller bills so I can tackle the bigger ones!