Credit Card Interest Rate Formula

MallyGirl

you do need to have a balance to transfer though.

18cc

I worked it put at 13.4 pence per day on £1000. Hopefully someone else will confirm that.

Terry_Towelling

13.4p per day for each £1000 of outstanding debt is correct (as stated).

However, after each payment you make towards the debt, the balance will drop and so the daily interest figure will reduce. For example, if your balance dropped to £950, the daily interest figure on that balance would be 950 divided by 1000 multiplied by 13.4p (950/1000 x 13.4 = 12.7p)

No one here can really give you an exact figure for the way the total interest will change whilst you pay down your balance because we don't know exactly when you will make your payments, we don't know what the minimum payment calculation will be for the card you use and we don't know whether you plan to use the card for any more spending.

The minimum payment asked for is likely to be any interest shown on your statement plus a percentage of the total outstanding balance (as long as that amount is more than, say, £5). Whatever it is, I think most people here would recommend you try to pay more than the minimum each month.

Pra2018

Hi Terry,
Good Evening!
You are perfect.
Thanks for clearing my doubt.

Terry_Towelling

If only that were true - but thanks for the vote of confidence.

Let's just hope it's correct. All I did was summarise what everybody else had said.