Please help min payment question ??

Cat_girl_2

Hi there all,
I am starting on a big debt free quest/ journey...
I have started a diary and signed up for debt free challenges.
I have a question about my credit card debts which I will try and simplify...
I owe £9100 on an MBNA card.
£2000 of this was a money transfer at 22%:eek::(
The rest is a balance transfer that runs out in six months and goes to around 20%
So, £6000 at 20%

I am struggling to work out what my minimum payments will be as I can't work out the sums.

Can anyone help me with this and tell me roughly what the payments will be..

Thanks so much in advance for any help.
Ps I can't get another 0% at the moment....

YorkshireBoy

MBNA min payment is 1% plus interest.

Interest is, very roughly*...

Balance x (APR / 13)

So your MT interest would be...

£2,000 x (22% / 13) = £33.85

You'd need to do 2 (or 3 if there's also a purchase balance) interest calculations.


* How accurate do you want it?

HappyMJ

Cat_girl wrote: »

Hi there all,
I am starting on a big debt free quest/ journey...
I have started a diary and signed up for debt free challenges.
I have a question about my credit card debts which I will try and simplify...
I owe £9100 on an MBNA card.
£2000 of this was a money transfer at 22%:eek::(
The rest is a balance transfer that runs out in six months and goes to around 20%
So, £6000 at 20%

I am struggling to work out what my minimum payments will be as I can't work out the sums.

Can anyone help me with this and tell me roughly what the payments will be..

Thanks so much in advance for any help.
Ps I can't get another 0% at the moment....

Back of envelope calculation as your numbers don't add up.

You say you owe £9,100 yet the numbers add up to £8,000 so replace the actual numbers in the formula below to get a better result.

(2000*.22/12) plus (6000*.2/12) equals about £137 per month interest. Add 1% of outstanding balance of £8,000 (£80) and you get £217 per month.

If you can't get another card at 0% how about one that does charge interest but at a lower rate. Even a personal loan at 9.9% would save you some money. Re-financing tends to be frowned upon on this forum but if you close the old accounts you are replacing one debt with another and saving.

Cat_girl_2

Thanks very much YB... A rough estimate so I have a figure in my head is what I was looking for x

Cat_girl_2

Yes, I was thinking of the figure by June when I hoped to have paid some of it( as much as possible!! ) off...

Cat_girl_2

That's fab. I have an approximate figure in my head now. I am going to try and pay as much as I possibly can off and re evaluate in the summer to decide the next step forwards. I will now set a six month target as opposed to a 12 month one thanks for the help it's much appreciated.
X

Anthorn

Hey YorkshireBoy, you're doing well because I'm agreeing with you yet again

The minimum payment for both Aqua and MBNA is 1% of the balance plus interest plus any charges such as late payment fee, over-limit fee etc.

i.e. £20.00p interest is added to your balance of £80 making a balance of £100 so your minimum payment is £21.