Credit Card Cash

THE_ROCK84

Hi all, my sister took out £1000 from her creditcard. Her Cash advance rate is 21.00%. how much interest will she have to pay back in interest? what is the calculation?

Rafter

She will probably pay a 2% cash advance fee.

She will also pay interest from the day the money is withdrawn.

If she already has purchases on her account, they will be paid off first, so unless she pays her balance off in full she is likely to be paying interest on the cash for a while.


The 2% fee is £20

The interest in the first month will be £1000 x ((1.21^(1/12))-1) = £16.00

The exact amount will depend on when she made the withdrawl, when her statement is and when she pays it off.

The daily interest charge is about 53p

R.

martinpike

This isn't an exact calculation, but the 21% will be per annum, which roughly equals 1.75% per month.

1.75% of £1,000 is £17.50, so if you work on the basis that she'll pay less than £20 a month interest on it, you won't be too far out.

I'm sure others will come in with exact numbers, but I just wanted to reassure you that she won't be charged £210 a month!

However, she should pay this back asap - she's picked one of the most expensive ways to get hold of cash.

THE_ROCK84

yeah its a barclaycard. she made the withdrawl today (26th) and her staement is no the 4th! so if you add the interest and the fee is well, what is THE MAX she will have to pay on the £1000 borrowed? thanks rafter. P.s she always pays full every month

martinpike

martinpike wrote:

This isn't an exact calculation, but the 21% will be per annum, which roughly equals 1.75% per month.

1.75% of £1,000 is £17.50, so if you work on the basis that she'll pay less than £20 a month interest on it, you won't be too far out.

I'm sure others will come in with exact numbers, but I just wanted to reassure you that she won't be charged £210 a month!

However, she should pay this back asap - she's picked one of the most expensive ways to get hold of cash.

See, told you so! Not only was Rafter more accurate, he was quicker too!!!

Hehe.

Rafter

Well, if she has the cash in her current account now, she could pay the bill straight away.

The charge will be £20 plus 53p per day after the 26th until the funds clear.

If she pays the bill today then, allowing 4 working days for it to clear she will probably be charged About £23. If she waits until her due date, I'm guessing around a month from now given her statement date, she will pay about £36.

R.

PS. Martin, sorry for being the class swat on this occassion!

HelenR_3

53p a DAY !!

I`ve never withdrawn cash from a credit card and this sort of information makes me even more happy never to do so , i was just wondering though ROCK was that a CLASSIC barclaycard or GOLD.......or maybe even platinum...

THE_ROCK84

shes on a inital

daveboy

Surely I can't be the only one seriously confused, possibly worried here

Withdrawing £1000 from a credit card must surely involve 2 transactions on 2 separate days, as there is a daily limit. Therefore 2 sets of charges would be applied beginning on, you guessed it, 2 different dates.

Maybe it's just me that can't believe that a user of MSE hasn't even in a small way passed something on to a member of their family.

It also appears that some people didn't pay much attention at school.

EDIT - Having read a previous post of yours about how having a 'gold' card makes you a better person - I think even the teachers at school would have given up.

PeeWee

If you need a £1000 in cash quickly, and that is the only access you have to it then why does that make you stupid as you seem to be implying?

If I was in that situation I would have done the same, and paid the charges.

How do you know the £1000 didnt make her £2000 with whatever she was using the money for? id this was the case, the charged would be a pitance.

daveboy

Maybe it's just me who thinks that if someone doesn't know what they'll pay to borrow the money, then they won't have the brain to make money from it.

It wouldn't surprise me if it's a Barclaycard test set by the resident Barclays fetishist in any case (see other posts by Rock to see what I mean).