need help understanding the intrest rates and min payments

GambledLife

I have many credit cards with over 36k in debt (no assets to sell) and I'm trying to work out what card to pay off first, two of these cards are not 0% balance transfers so these are first on the list. The issue is I can only afford to pay the minimum payments until 26th of July (Halifax overdraft of 4k with massive interest rate I need to pay of first) I have a post in debt free wannabe section talking about all of my debts and outgoings.


Values taken from Decembers statement
Tesco - Statement date 4th, payment date due 24th, I pay on 6th
Total: - £6253.38
Split over monthly rates below
2.075% - £4075.33
1.805% - £2178.04
1.805% - £0.01
Min payment
£149.37
They say min is calculated as Interest + 1% of balance so shouldn't the be higher?
Interest for the month should have been £123.8948 (If my sums are correct)
if its interest + 1% of balance then Minimum payment should have been £186.4286


Values taken from Novembers statement
Capital One - Statement date 9th, payment date due 5th following month, I pay on 12th of statement month
Total: - £2177.53
Split over Annual rates below
30.340% - £2177.53
Min payment
£73.47


I cant see anywhere how the minimum payment is calculated as far as I can tell this was lower then it should have been. Interest for the month should have been £55.05522 (If my sums are correct)
so if its interest + 1% of balance then Minimum payment should have been £76.83052


Am I working out the interest wrong ?


What card should be paid of first to save me more in the long term ? I have around 900 to spit between them for the month as of July 26th.

ViolaLass

Second one has the highest yearly rate, doesn't it? In which case, all your spare money should go there.

[Deleted User]

Interest is calculated daily, so using the monthly rates on the statement amount only provides a rough estimate. The main payment figures will be the correct ones.

Pay off the card with the highest rate.

GambledLife

Deleted_User wrote: »

Interest is calculated daily, so using the monthly rates on the statement amount only provides a rough estimate. The main payment figures will be the correct ones.

Pay off the card with the highest rate.

Thank you, so Capital on first even though Tesco has higher interest payment (because of amount on card)?


Looking at the estimate of interest for Jan on Tesco December statement (if you only pay the minimum by the 24th of December then the estimate interest for next month is £126.68) meaning that my min payment would be around £186.48 that's over double Capital One.

[Deleted User]

The rate is the only determining factor. Always put additional funds towards the highest rate card.

GambledLife

I have also learned that credit card rates can increase when ever a bank likes, is this true?
If I only make the minimum payment on a card for one year will a bank rise my APR ?
What if the card is a 0% balance transfer for 38 months can they still raise the minimum payment I need to make?


Can Credit card company's demand the full balance at any time? even if I make the minimum payments?

[Deleted User]

They can change minimum payments. They can also change interest rates based on risk.

They can't demand full repayment unless you default.

molerat

You can refuse a rate change and continue paying off at the agreed terms. You will not be able to use the card though.

GambledLife

molerat wrote: »

You can refuse a rate change and continue paying off at the agreed terms. You will not be able to use the card though.

Thank you that's good to know, the plan is not to use them.