APR and PA

gonnabdebtfree

I have 2 cards with M&S one at 3.9% PA and the other at 4.9% PA and I was looking to consolidate them with a loan from moneybackbank.The loan is 6.7% APR but i just dont know the difference between PA and APR and if i am just better paying for 2 cards than 1 loan.

CLAPTON

Why are you consolidating a low interest CC into a higher APR loan.... sounds like madness


often PA mean per annum which is the rate applied in a prorataed monthly rate

so if you have a 12% PA rate that means 1 % (i.e. 12/12)
per month so if you had a 1000 owing on a CC you would pay 10 per month interest
this corresponds to a APR of 12.68% APR due to the effects of monthly compounding

or 3.9% PA would be 3.97%APR
or 4.9%PA would be 5.01% APR

Retired_I.F.A.

The only advantage in taking out a loan rather than keeping the cards is that you will see an end in sight to a loan, but if the loans APR is higher your best off to cut the plastic in half and continue payments never using them again.