working out minimum payments - quick question!

fat_jedi

I've just transferred a balance to the M&S Card which is 4.9% for the life of the balance.

This card is only going to sit around being paid off each month until the debt is gone.

I transferred £3000 so am trying to figure out what the first and following repayments will be.

My working out is 4.9% of £3000 is £147, so the total is £3147.

They ask for 3% of the balance as a minimum payment each month.

So I think my first payment will be: £94.41 (3% of £3147)

Is that right or am I missing something?

My Virgin card (which I've just transferred the balance from) was only about 80.00 per month and was a 27% APR on £3600.

Can someone more savvy than me show me what I'm doing wrong?

Thanks

FJ

nicnevitt

It depends on the payment schedule they have you on.

If your APR is 4.9%, then you will be charged approx 1/12 of that each month.

Some companies calculate the payment as interest plus fees plus constant of £5 say OR they calcylate a certain percentage of the balance.

Normally whichever is lower is the minimum payment you would need to make.

YorkshireBoy

Monthly interest will start at approx £12.

M&S minimum payments have gone to 2.5% of the balance (with this months statements).

First payment £3,012 x 2.5% = £75.30


http://www.whatsthecost.com/creditCard.aspx

rezarf

So I take it most Credit Card companies will add interest onto the outstanding amount first then workout the minimum payment.

Is there anyway of finding out how much the minimum payment it for different cards without having to phone customer services?

Rezarf

wannabedebtfree_2

The info should all be on the back of your statements, and yes the interest is added before the minimum amount is calculated.

As the OP said, you can calculate the interest by taking the balance, multiplying it by the interest rate (for 4.9% you can mutiply it by 1.049, it will work out), then minus the balance, and divide by 12, that will be the amount of interest you pay.

YorkshireBoy

rezarf wrote: »

Is there anyway of finding out how much the minimum payment it for different cards without having to phone customer services?

Statement
Credit agreement
Original T&C's
Notice of Variation
Provider website
Summary here: https://www.stoozing.com/0fees.htm

fat_jedi

Thank you for the calculator - That helped out so much!

It's scary to think how much interest and how many years it will take to pay off a debt!

:eek:

Thanks again - I knew someone on here would know how to help.

Regards

FJ