Credit card balance transfer offer

shamrock53

Please can anyone tell me how much interest per month I will pay on a balance of £5118 @3.9% for 36 months with Mbna.
Thank you in advance.

Asghar

It depends on how much you will be repaying each month, do want to repay over the whole 36 months?

Ebe_Scrooge

In very simple terms, 3.9 % means you're charged 3.9% of £5118 in interest each year.  This is £199.60, which is £16.63 each month.  The other way of calculating it is that the APR of 3.9%, divided by 12, equates to 0.325% per month.  Two ways of saying the same thing.  So in theory, you'd be paying £16.63 each month in interest.  But the statutory minimum payment will include a proportion of the capital, so the capital will gradually reduce each month, so the interest amount will also decrease each month.

Do remember though - if you only pay the minimum, you won't have cleared the balance by the time the promotional rate finishes, and you'll switch to their - much higher - standard APR.  And you can't bank on being able to transfer any remaining balance to another low-rate deal, so make sure you've got plans in place to pay off the full balance when the deal comes to an end.

shamrock53

Ebe_Scrooge said:

In very simple terms, 3.9 % means you're charged 3.9% of £5118 in interest each year.  This is £199.60, which is £16.63 each month.  The other way of calculating it is that the APR of 3.9%, divided by 12, equates to 0.325% per month.  Two ways of saying the same thing.  So in theory, you'd be paying £16.63 each month in interest.  But the statutory minimum payment will include a proportion of the capital, so the capital will gradually reduce each month, so the interest amount will also decrease each month.

Do remember though - if you only pay the minimum, you won't have cleared the balance by the time the promotional rate finishes, and you'll switch to their - much higher - standard APR.  And you can't bank on being able to transfer any remaining balance to another low-rate deal, so make sure you've got plans in place to pay off the full balance when the deal comes to an end.

Thank you so much for your detailed answer.