Credit Cards- A New Language

KC112892

Hi All,

I just wanted to know if there was anything posted on here in relation to the foreign language credit card companies go on about? My Dad has never owned a credit card in his life and always paid for this outright and I don't think there was a lesson at school on money management and getting credit.

I've recently spoken to the 3 credit card companies I am with and they have given me APR figure and a monthly interest figure, one being much higher than the other natural. What I cannot understand is their explanations of the difference.

All I wanted to know is if I have for example £1000 on my card with an APR of 29.5% and a monthly interest rate of 2.34% am I able to manual calculate the interest on my card.

I have build a 12 month finance tracker with the relevant cards, balances etc in- what I want to do it set a monthly payment and see my spreadsheet calculate how long it will take to clear the balance inclusive of interest. I assume it will be the monthly figure but when I queries this with said companies they kept referring to the APR???

Is there anyone that can provide me with an idiots explanation of APR and when it would apply to your account?

Thanks

B

ceredigion

AER = annual equivalent rate.
The amount at the end of the year when you compound the monthly rate.

Shakin_Steve

http://tools.natwest.com/personal/credit-cards/payoff.html

KC112892

Thank you this is really useful.