Very catalogue - didn’t know where to post!!

Amy123456

Before anyone tells me I’m an idiot, I know already so please spare me that, I’m mad at myself for being so stupid! thanks for reading if you get through it all!
I had a baby and moved into a flat with my boyfriend and we had absolutely nothing, so I literally had to buy everything, white goods and furniture etc. I was making payments and everything was fine. Then my other half lost his job and for 3 months we had next to no income - we had to get credit cards to support ourselves etc. He’s now working but I’ve just realised how bad the very has gotten as I couldn’t afford to pay it.
So I borrowed £300 in March, £300 in April and £300 in may, all on buy now pay 12 months later. I haven’t been making payments on any of these orders, and I can’t find any information about how much the interest will be if I don’t pay it all off in time (I most likely won’t because we now have credit cards and other credit like Argos) I know that my apr is 44.9% and the terms say interest is added from the order date. I have no idea how to calculate the interest, do I work out 44.9% of 300 and times it by 12? And that’s the interest they will add for each month? I’m clueless and I’m aware I should have made sure I understood before I entered the agreement.
If anyone can be of any help I’d appreciate it so much, I have been feeling so alone in this worrying about it all and I’m pregnant so no good at all😭

[Deleted User]

APR means annual percentage rate. It's broken down into a daily rate and interest is charged daily on the balance. So 1/365 of the APR would give you a rough idea of the daily interest.

If you're not making payments at all, there will also be late payment fees added on - edit: not applicable if BNPL.

JooM72

As they’re buy now pay later I don’t think late payment fees will apply. Your balance will suddenly go up when the first payment is due (12 months after you bought the item), for the 12 months interest and you will need to pay minimum payments from that month onwards.

fatbelly

It sounds like you need some help to order your payments to creditors.

The best forum would be debt free wannabe, where they will invite you to post a statement of affairs

TriggerHappy

Hi Amy,

Wrong forum really - you should go to Debt Free Wannabe.

When you say you borrowed 3x £300... Do you mean cash? I didn't know they did that.

I could be wrong but I think that what will happen is that you'll start having to make monthly payments rather than a single one off payment to clear the balance .

Easiest thing to do to get actual numbers though would be to just call them. Don't mention ANYTHING about struggling with finances etc as Very can be a bit of a pain, just say what will happen so you can plan ahead...

Good luck!

edwards97

If you log in to your account online it will tell you. Go to the bit where it says Make Payment, on that page there should be a bit below where you make the payment to see Buy now pay later items. Gone in to this and it will tell you how much interest you will be charged if you dont pay off.

chrisw99

I use the BNPL on Very quite a bit, but you have to pay off every penny by the 12 month date. Even if you have 1p left, they charge you the interest on the WHOLE AMOUNT over the 12 months, so if you bought something at £300, had 1p left on it, they would then add £119.70 !!

You can pay it off with a credit card though, which could be the lesser of two evils if you have enough credit on one of your cards to do that as that would be at the standard 18.9% or whatever not the extortionate 39.9%

Stuart_W

chrisw99 wrote: »

I use the BNPL on Very quite a bit, but you have to pay off every penny by the 12 month date. Even if you have 1p left, they charge you the interest on the WHOLE AMOUNT over the 12 months, so if you bought something at £300, had 1p left on it, they would then add £119.70 !!

You can pay it off with a credit card though, which could be the lesser of two evils if you have enough credit on one of your cards to do that as that would be at the standard 18.9% or whatever not the extortionate 39.9%

This.
Very accept payment by credit card. Even if you only have a rubbish credit card, such as the Aqua 34.9% one, even if the interest rate is similar to the appauling very Apr, it avoids interest for the BNPL period on your very statement.

Debt free board will help you.

If you're looking for actual costs, if your were accepted for one of the poorer credit cards mentioned on here with a typical rate of 34.9%, £900 could be paid off in 4 years at £33 a month, in 3 years at £39 a month, in 2 years at £51 a month and in 1 year at about £88 a month. Hope that gives you some idea of the affordability you are looking at.

chrisw99

The key thing to remember with these BNPL deals is not to take that literally and buy it now and pay in 12 months, because the chances are if you can't afford to buy it outright now, you probably can't afford to pay it all off in 12 months. It's best to think of it as a way of spreading the payment over 12 months and getting 0% interest on it, just pay a bit each month.

I've used them for the more expensive Xmas pressies in December when cashflow is at a premium, then pay off throughout the following year.

SnowTiger

Amy123456 wrote: »

Before anyone tells me I’m an idiot, I know already so please spare me that, I’m mad at myself for being so stupid! thanks for reading if you get through it all!
I had a baby and moved into a flat with my boyfriend and we had absolutely nothing, so I literally had to buy everything, white goods and furniture etc. I was making payments and everything was fine. Then my other half lost his job and for 3 months we had next to no income - we had to get credit cards to support ourselves etc. He’s now working but I’ve just realised how bad the very has gotten as I couldn’t afford to pay it.
So I borrowed £300 in March, £300 in April and £300 in may, all on buy now pay 12 months later. I haven’t been making payments on any of these orders, and I can’t find any information about how much the interest will be if I don’t pay it all off in time (I most likely won’t because we now have credit cards and other credit like Argos) I know that my apr is 44.9% and the terms say interest is added from the order date. I have no idea how to calculate the interest, do I work out 44.9% of 300 and times it by 12? And that’s the interest they will add for each month? I’m clueless and I’m aware I should have made sure I understood before I entered the agreement.
If anyone can be of any help I’d appreciate it so much, I have been feeling so alone in this worrying about it all and I’m pregnant so no good at all😭

Twelve months of interest will be added to your account when the BNPL period ends, unless you pay the balance off in full before then.

Assuming you make no payments until then, I think £134.70 will be added to your account, increasing your balance to £434.70 over night.

First monthly payment after the BNPL hits your account will be 7% of £434.70. That's £30.43. And your new balance will be £404.27 after you've paid it.

Very produce statements every 28 days.

They will calculate interest daily. Approximately: balance / days in year * statement period * interest.

That's £404.27 / 365 * 28 * .449, which is £13.93.

The following month that will be added to your account, giving you a new statement balance of £418.20.

Amount to pay will be 7% of £418.20. That's £29.28.

Basically, you're looking at having to make payments of about £30 a month. The amount will slowly reduce over time. Pay as much as you can, when you can, to reduce how much you finally pay in interest.

I think those numbers are approximately correct!