Very.co.uk 2 February 2022 at 4:44PM in Credit file & ratings 4 replies 208 views

Orville

Hi.

I just came out of a BNPL and interest has been added on at around £100.

This is fine etc. I have no concerns about the amount and paying the debt.

The debt is £1500.

My first bill has come in at £103.

The interest rate in my account is 9.9%.

Does anyone know how they arrive at a first payment figure of £103?

Basically can someone break down what amount is interest and how they arrive at the rest.

I can easily afford to pay but was just wondering how they arrive at the actual figure.

[Deleted User]

The payment calculation will be defined in your agreement - it will be calculated on capital, interest and term.

Ebe_Scrooge

As above, it'll be defined in the agreement you signed.  Quite apart from anything else, you haven't told us the term of the agreement.  And is the 9.9% an APR figure?  If it is, then a very rough fag-packet calculation would suggest your term is something like 16 months, this would give a monthly figure of roughly £103 a month.

In simplified terms, an APR of 9.9% would mean you pay £148.50 per year in interest (9.9/100*1500).  It's a little bit less than this in reality, since each month you'll be reducing the capital, so next month's interest will correspondingly be less.  But this will give you a rough ball-park figure to work from (you can calculate it precisely if you want to sit down and plug each month's figures properly into a spreadsheet   )

Vinknut

Orville said:

Hi.

I just came out of a BNPL and interest has been added on at around £100.

This is fine etc. I have no concerns about the amount and paying the debt.

The debt is £1500.

My first bill has come in at £103.

The interest rate in my account is 9.9%.

Does anyone know how they arrive at a first payment figure of £103?

Basically can someone break down what amount is interest and how they arrive at the rest.

I can easily afford to pay but was just wondering how they arrive at the actual figure.

It's in your statement from very.co.uk - fairly easy to find (copied below)

So that would be 7% of £1,500 which is £105 (so presumably your actual balance is around £1,471.43? giving a min payment of £103)

The minimum payment due every month will be the amount notified to you and shown on your statement. 

This will be the total of any of the following that apply to your account plus any arrears: 

a) If any amount is owed on the balance of transactions on your Standard Facility (including BNPL Transactions for which the delayed payment period has ended) and is due for payment, 7% of that amount with a minimum of £5, or, if this amount is less than £5, the full amount owed. Any arrears are not included in the amount owed for the purpose of this calculation. 

b) Any default charges due. 

c) Any instalments due on Persistent Debt Plans. 

If you wish to avoid paying any interest on Take 3 Transactions you must make the Take 3 Payment in full. If you do not, you will lose the benefit of interest opt out on all your current Take 3 Transactions and will be charged interest on these transactions. The Take 3 Payment is made up of the total of all payments due on transactions still qualifying for Take 3 plus the minimum payment for the remainder of the Standard Facility due for payment, plus default charges due

Orville

Hi.

Many thanks.

Much appreciated.