Catalogue Interest

Joeyb1

It's actually a catalogue not a credit card but still the same premise I think
My credit limit is 1400. I'm at 1368
Minimum payment is £75 interest is 40% from what I've read. Does this mean 60% of what I pay only comes off my balance and the rest is interest. If I was to pay £75 a month how long before it clears at that interest rate. Am I. Paying 40% Apr or 40% interest a month. How's It work?

Would paying a few quid a day too off it help or not. Could someone explain it to me please and what the best option is

Thanks

Stevie_Palimo

Pay it off as quickly as possible and the interest is worked out against a balance outstanding so lets say the following here :-


Owed £1368.00
Payment £75.00
Balance £1293.00
Interest 40% per anum I believe £517.20 divided by 52 weeks = £9.946, So say £9.95 a week as long as the balance sits at £1293.00.


As for making a daily payment this will be a waste of time and effort so you will be better off paying extra in order to reduce the overall balance quicker and keeping the cost of interest down to a minimum.

[Deleted User]

How is the min payment caclulated? Is it 1% of balance plus interest, or something else?

Your 40% figure will be an APR, making interest something like 3% a month.

You need to pay as much as you can, as early as you can, to minimise the interest. And get your balance way down from your limit.

And finally, stop shopping from catalogues. The inflated prices, plus high interest, will make you very poor.

Joeyb1

It's 1/12 of the balance each month minimum

SnowTiger

Joeyb1 wrote: »

It's 1/12 of the balance each month minimum

A twelfth of £1,368 is £114, so that can't be right.

What catalogue company is it?

Very for example, and presumably its sister catalogues, have a minimum repayment of 7% plus interest every 4 weeks.