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Balance Transfer Interest
I have a balance transfer 5.9% over 30 months with no fee with the Halifax. Please help me understand the interest.
If i balance transfer £5000 on 1st May then pay £200 every month on the 1st of each month how is the interest calculated?
Is it 5.9% on the balance owed (so reduces exactly on the repayment dates, calculated daily)
Or 5.9% from the statement issue date (and balance on the statement)?
Or do i just owe 5.9% on the £5k?
Comments
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What did Halifax say when you asked them or in the terms and conditions they sent you?
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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I have not tried to call them because of wait times. No further terms on the offer. Original terms for the account are long lost. Thank you for your help and advice though
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Roughly speaking after month 1 interest of 5.9% will be charged on £5000 around £24.50
Next month you pay £200 off so you will be charged 5.9% on £4824.50 - around £23.70 and so on.
Every payment you make will reduce future interest on the balance.
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Not being difficult but only Halifax will know how they apply payments and interest - normally they reduce the balance and then the next month the interest is charged on the lower balance
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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