Interest charges

hammerbm

I owe £2400 on a credit card that needs to be paid by Sunday 9th January. I have repaid £1500 so have £900 remaining. The apr is 49% so how can I work out how much the interest will be going forward

eskbanker

If the APR is 49% then that's roughly 4% per month, so on £900 that would be about £36, although your minimum repayment will be higher than that, to pay off a small chunk of the balance (e.g. 1%), which in turn will lead to gradually reducing monthly repayments.

hammerbm

Thank you very much for your answer Eskbanker.i was worried it would be 49% added for every month I went over the deadline so that’s not bad at all.im 52 and this is the first time I’ve got into debt as I had to help one of my stepdaughters out but I have a decent job with a fairly good salary and monthly income from a tenant on a flat I own so now know I can pay off my debts this year.

eskbanker

hammerbm said:

Thank you very much for your answer Eskbanker.i was worried it would be 49% added for every month I went over the deadline so that’s not bad at all.

APR is Annual Percentage Rate, i.e. if you owed £900 for a full year at that rate you'd pay £441 interest in total over that whole time - still quite a high interest rate but nothing like as bad as it would be if multiplied by 12!

cx6

would it be worth applying for a balance transfer card at a lower (or even zero) interest rate and getting rid of the 49% card as that rate does seem high even for credit cards

[Deleted User]

cx6 said:

would it be worth applying for a balance transfer card at a lower (or even zero) interest rate and getting rid of the 49% card as that rate does seem high even for credit cards

It would always be worth a go yes, hopefully OP will get one

49% is in the realms of Vanquis or similar with a shorter term offer but ouch yes