Argos Store Card

PaulDesmond

Can't find a forum for store cards so will post here.

I purchased an item 4 months ago for £103.00 I have 6 months to pay it off.

I have a statement now saying I have £20 left to pay. If I don't pay it off after 6 months I will pay £5.01 interest.

Argos charge 29.9% APR on the remaining amount for the whole 6 months.

How can £20 at 6 months come to £5.01? I make it £2.79

eskbanker

PaulDesmond wrote: »

Argos charge 29.9% APR on the remaining amount for the whole 6 months.

Worth reading the Ts & Cs in detail to see exactly what they say and understand what it means - my expectation would be that they won't be charging six months worth of interest on the residual amount left at the end of the six month period, but will charge interest on the decreasing balance throughout the period, calculated on a daily basis.

In other words, it won't be £20 at 6 months but £20 for the final 2 months, plus (say) £40 for the previous month, £60 for another and £80 for another, depending on how quickly you paid it down to £20. Have higher (conditional) interest amounts been included on previous statements?

Presumably its academic anyway - if you now only owe £20 then if at all possible it obviously makes sense to pay that within the next two months to avoid that extra fiver?

Anthorn

PaulDesmond wrote: »

Can't find a forum for store cards so will post here.

I purchased an item 4 months ago for £103.00 I have 6 months to pay it off.

I have a statement now saying I have £20 left to pay. If I don't pay it off after 6 months I will pay £5.01 interest.

Argos charge 29.9% APR on the remaining amount for the whole 6 months.

How can £20 at 6 months come to £5.01? I make it £2.79

If you don't clear the whole amount interest is added to the whole amount from the day of purchase. Therefore you will be paying 6 months of interest on the whole £103.00 calculated on the remaining balances over the period.

i.e. you buy an item for £100 on 6 months Buy Now Pay Later, pay off £50 in month 3 and let the remaining £50 ride until the deal expires. You will pay interest on £100 from the day of purchase up to month 3 and then interest on the remaining £50 from the day of purchase until the deal expires and then the balance will be transferred to normal credit and will continue to accrue interest.

But if you clear the whole balance by the expiry date no interest is payable.

john1002

Worth mentioning that it is clearly shown in the terms and conditions how interest is calculated as well as in the FAQ they refer to in most communications.

John