Maths required!

omgimcrap

Hi All,


Last week I settled the finance on my daughters car TVO £5362 using my MBNA credit card. (19.8% APR)


She is selling the car and will repay the debt ASAP. This is likely to happen within the week.


Is there going to be interest on the amount and if so how much? (I don't want to be out of pocket as a result obviously!)


thanks


Tim

[Deleted User]

If you don't repay the balance in full after the statement then yes there will be interest

Willing2Learn

omgimcrap wrote: »

Last week I settled the finance on my daughters car TVO £5362 using my MBNA credit card. (19.8% APR)

She is selling the car and will repay the debt ASAP. This is likely to happen within the week.

Is there going to be interest on the amount and if so how much?

You won't pay any interest on the transaction if you pay the full balance once you have received the applicable statement.

omgimcrap

my apologies but I already had a balance on the card. as long as what she needed is paid off I won't be charged any additional interest?
cheers
tim

Willing2Learn

As long you repay the £5362 in the same statement cycle, then you should not incur any interest on the transaction...

18cc

does settling a finance charge count as a purchase or cash withdrawal ?

YorkshireBoy

Willing2Learn wrote: »

As long you repay the £5362 in the same statement cycle, then you should not incur any interest on the transaction...

Since OP is already carrying an interest bearing balance, interest on this transaction is unavoidable.

£5362 x monthly interest rate x 12 / 365 will be the cost per day.

Voyager2002

Not a Maths problem but a comprehension test... on the small print of credit card agreements, and inferring the OP's situation from some clues given almost incidentally!

Voyager2002

omgimcrap wrote: »

Hi All,


Last week I settled the finance on my daughters car TVO £5362 using my MBNA credit card. (19.8% APR)


She is selling the car and will repay the debt ASAP. This is likely to happen within the week.


Is there going to be interest on the amount and if so how much? (I don't want to be out of pocket as a result obviously!)


thanks


Tim

If your daughter has faced reality and realised that she cannot afford her car; made the effort to sell it; and then after all that hands over thousands of pounds to you in prompt settlement of her debt -- well, you earn a gold star for parenting, and should not worry about a small amount of interest. Maybe do the calculation and let her know that helping her out cost you this amount of cash, but it would be cruel to ask her to pay it.

PixelPound

YorkshireBoy wrote: »

Since OP is already carrying an interest bearing balance, interest on this transaction is unavoidable.

£5362 x monthly interest rate x 12 / 365 will be the cost per day.

Only unavoidable if the full balance is paid.

What happens if your daughter cannot sell the car for the full value or it takes longer to sell? You are aware you may need to carry the balance longer, and how does the shortfall get made up.

onlyfoolsandparking

Voyager2002 wrote: »

If your daughter has faced reality and realised that she cannot afford her car; made the effort to sell it; and then after all that hands over thousands of pounds to you in prompt settlement of her debt -- well, you earn a gold star for parenting, and should not worry about a small amount of interest. Maybe do the calculation and let her know that helping her out cost you this amount of cash, but it would be cruel to ask her to pay it.

Absolutely agree, you've got a good one there OP