MoneySavingExpert Chair, Martin Lewis · Editor, Marcus Herbert

# MBNA Confused how interest is calculated

edited 30 June 2019 at 12:27PM
3 replies 612 views
Forumite
173 Posts
edited 30 June 2019 at 12:27PM
Hi :wave:

I'm easily confused , but I'm trying to work out the best way to keep interest payments down.

We've got an MBNA credit card where we owe around £4k. This month we've got £1,400 to pay part of the amount off.

The date for payment is around the 10th of the month. We can pay off £1,000 on the 4th July, with the other £400 being paid on the 10th. Would this make a difference? We're not using the card until we've paid off the total.

MBNA's T&Cs doesn't really answer my question:
What is estimated interest and how is it calculated?

Your statement will detail ‘Next month’s estimated interest’, just so you’re aware and can budget accordingly.

The calculation assumes that:

You continue to make the minimum payments on time.
You don’t make further transactions in the coming month.
You don’t incur additional fees or charges.
There are no changes to your statement date or interest rate (excluding promotional offer expiry).

Good to know

We don’t charge interest on purchases made during your latest statement period if you pay off your full balance (including any balance transfers and money transfers) by the payment due date, and you also paid your previous month's balance in full by the due date.

We've got three incomes coming in within the month on different dates, so with juggling our budget, perhaps we can reduce the almost 30% interest by paying MBNA say 3 times in the month?

Thanks for any help :beer:
So I've got this target of spending just £75 per week (£300 per month, £3,600 a year) on food shopping -
Jan - £599.86; Feb - £464.69; March - £731.58; * April - £231.37; May - £366.91; June - £306.34

July - £254.09 + £36.89 = £290.98 (£9.02 for the rest of July)

* Started £300 pw challenge

## Replies

• Forumite
945 Posts
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It will make a small difference. Pay the £1k off as soon as you can.
• Forumite, Board Guide
4K Posts
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As interest is calculated daily, the sooner you pay anything off when carrying a balance the less interest you will pay.

6 days will not make a huge difference but it will mean slightly less.
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• Forumite
173 Posts
Thank you Edi81 and Dobbibill. Super response.

Every little helps as 'they' say
So I've got this target of spending just £75 per week (£300 per month, £3,600 a year) on food shopping -
Jan - £599.86; Feb - £464.69; March - £731.58; * April - £231.37; May - £366.91; June - £306.34

July - £254.09 + £36.89 = £290.98 (£9.02 for the rest of July)

* Started £300 pw challenge
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