Barclaycard interest confuddlement!

esellek

I have asked Barclaycard for an explanation of how they work their interest, got a load of gobbledegook back! Is there anywhere that can help me work out how they work their interest? I'm trying hard to budget and I didn't expect the interest to be higher on a lower balance - it's upset my budgeting!. On my statement is says my standard rate of interest is 1.4733%

Confuddled!

My min payment for July is £303.68
Est int for July is £165.04
This is on the new balance of £11916.38

June
Prev balance £12027.35
Payments made: 936.88
activity (had to get a new oven) 639.53
Interest charged: £186.38 (my balance which was shown on my account before they did the billing on 3 June was £11,730)

My May statement:
prev balance: £12,346.15
payments made: £643.59 - throwing everything possible to the pay it off
activity: £147.44
interest charged: £177.35
new balance: £12,027.35
Est int next month £191.79 (int rates as below)

April statement21
Prev balance £12,434.21
Payments £514.21
activity £280
interest charged £146.15
set interest £182.06 (standard rate 17.68%/19.2 compound equiv)

[Deleted User]

Interest is charged on your daily balance.

So although you're paying some off, you're charged interest on that amount until you do. Paying off late in the statement period doesn't therefore have much impact until the following month.

esellek

Thank you ZX81, although on a note next month's interest is lower! I wish they'd make working out interest easier. The strange world of credit cards, I'll be so glad once I have this one hit on the head.

GN_TDCI

Is it not on your statement? Mine is.

On the first page is states "Your current interest rates" and then shows the standard rate per annum, and the Compound Equivalent in brackets. Use the compound equivalent when working out your estimated interest per month and when comparing cards like-for-like.