0% Interest Rate Ending - Outstanding Balance

Whitty777

Hello

The 0% interest promotional rate on my Barclaycard is ending in a couple of months and I am a bit confused what happens after this. I will probably have a balance of £2000 to pay when it ends.

I am trying to work out how much interest I will pay for the first month after it ends. The interest rate will be 18.60% per annum.

Am I right in thinking that I should be charged £2000 x (18.6 / 12)% ? So around £31

Any help would be greatly appreciated

[Deleted User]

That's about right.

Kayalana99

Whitty777 wrote: »

Hello

The 0% interest promotional rate on my Barclaycard is ending in a couple of months and I am a bit confused what happens after this. I will probably have a balance of £2000 to pay when it ends.

I am trying to work out how much interest I will pay for the first month after it ends. The interest rate will be 18.60% per annum.

Am I right in thinking that I should be charged £2000 x (18.6 / 12)% ? So around £31

Any help would be greatly appreciated

If you can't pay it off, can you balance transfer it to another 0% interest card?

chattychappy

Whitty777 wrote: »

Hello
I should be charged £2000 x (18.6 / 12)% ? So around £31

Yep.

For completeness, that formula doesn't allow for monthly compounding. The monthly rate is actually a bit smaller, but then compounds to give an APR of 18.6%.

So an accurate calculation is:

£2000 x ((1+0.186)^(1/12))-1 = £28.63! You've "saved" £2.37 already...

The exact figure will depend on when the deal ends and the timing of statements and payments received.

Whitty777

Thanks for all your replies. I was a bit worried that they may backdate the interest so I was paying the full 18.6% interest on the £2000 balance but it looks like the interest will just begin to accumulate from the day the 0% ends if I'm understanding correctly

I am currently trying to find a card to transfer the balance to but so far have only been offered a £700 credit limit

Superscrooge

Assuming the £700 credit limit is on a 0% BT card, don't turn it down. The credit search will already be on your file and you can transfer approx 1/3rd of your debt onto it.