CC Interest query

gettingtheresometime

Aiming to close off my Aqua card so making small overpayments as & when I get paid for eBay sales.

But my first statement after starting these overpayments has got me wondering.

For context



Decs balance pre interest being added was £885.62, the interest added was £26.31 & the payment made was £35.50

Nov figures were £895.81, £26.63 & £36.83.

Jans figures looks like they are £876.43, interest looks as if it will be £26.23 but I paid in a total of £83.60.

So even though I paid in nearly 3 times the minimum payment, the interest charged is only 8p less than last month.

I'm sure it's right (though why I don't know) but is it worth querying?

monetxchange

What’s the APR so we can work the interest out?

I would say you’re paying very small amounts in comparison to your amount owed so it’s not making a dent on the total on which interest is charged on. The “minimum” is just that - the bare minimum you can pay so doesn’t have a great impact on interest if you pay slightly over that I wouldn’t think. And Aqua notoriously have high APRs.

gettingtheresometime

Oh I agree it's an eye watering APR - it's 37% but I guess like most of us I've just played at clearing it but now I'm going to clear it and then close the card (what a relief that will be!)



I have been paying stupidly small amounts but now making a really effort to clear this card - that's why I'm surprised in making such a relatively big payment this month has had hardly any effect on the amount of interest charged.


I suppose it's made me even more determined to clear this card now!

FtbDreaming

£83 isn't really a big payment off almost £900... just throw everything you can at it and itll soon go down.

Cycrow

Next month is when you will notice the interest drop, as the January's interest will be based on your balance between dec and jan, ie before you made the big payment

monetxchange

You’ll get there. The thing that’s holding you back is the interest - you’ve increased your minimum payments, but it’s such a high rate that once the interest is added, you’re back nearly to the same total as before. For example, your balance has only decreased by £19 since November.

Definitely try and throw everything you can at this debt. Have you tried the snowball calculator to tell what to pay off first? It’s great at putting things into perspective and sorting out how to tackle it. Good luck!

gettingtheresometime

monetxchange wrote: »

You’ll get there. The thing that’s holding you back is the interest - you’ve increased your minimum payments, but it’s such a high rate that once the interest is added, you’re back nearly to the same total as before. For example, your balance has only decreased by £19 since November.

Definitely try and throw everything you can at this debt. Have you tried the snowball calculator to tell what to pay off first? It’s great at putting things into perspective and sorting out how to tackle it. Good luck!

No I haven't done the snowball calculator but as this is the card with the highest apr I'm assuming that this one would be the priority.

I am definitely clearing this one ASAP....as soon as I get paid anything from eBay, the money is withdrawn & paid over immediately.

I will get there!!!!

gettingtheresometime

Just wanted to say that I've taken monetxchange's advice, reduced payments to credit cards that I was overpaying to so that they are on minimum payments & have set up a standing order so that the money not going to them are paid to aqua.


Hopefully that means that I can keep up £80+ each month which means that this debt should be cleared within the next 7 months