MBNA - extortionate interest rates

chattychappy · 29 July 2011 at 8:54PM

Well.. pretty much sums it up in the UK. Few people can do maths...! If a company put people onto the phone who could do maths then they'd never afford the payroll!

If you are only on one rate, then work out the average daily balance and multiply by the monthly rate (which they usually quote alongside the APR. Monthly rates are typically 0% to 3%.

Of course it gets more tricky when you have to contend with:
1) multiple rates
2) not knowing exactly when something hits the account
3) application of payments (and credits)
4) months that aren't quite months

.... but not impossible!

And then there are the traps - eg realising that you only benefit from the "up to 56 days free credit on purchases if you pay in full" type of deal if you really do pay in full - including any promotional balances etc etc.