Apr?

avoniel

Not sure if this is the right forum but need help for my friend.

She currently has a credit card debt of £5000. and although she has destroyed it she can only afford to pay off £350 pm. She is paying interest of over £30 pm. Credit card bill is showing monthly interest rate of 0.64% but I dont know how to convert it to APR.

Can anyone advise me what APR rate would be and I can then use Martin's guides to help her find cheaper.
Many thanks

youknowwho

I just usually times it by 12 so its roughly 7.9% APR. Not too bad of a rate really. There are cheaper ones, like 5.9% lob but make sure your friend doesnt pay too much of a fee - I.E more than 2%. It sounds like your friend has really got him/hrself on the right track to clearin g that off! That will be gone in two years at that rate.

avoniel

Bump - sorry but we really need help

Clariman

jmcateer wrote: »

Bump - sorry but we really need help

The APR is 7.96% APR. I wrote this calculator to allow people to convert from monthly to APR and vice-versa.

Clariman
(Disclaimer: I have a connection with the above site. Martin Lewis/MSE supports our Stoozing site but has no involvemenet/sponsorship with makesenseof cards.)

Bismarck

I'm with youknowwho and Clariman on this...I do the same with the rate....it's probably a touch more complicated as interest is done a daily basis but there are plenty of people who'd be happy 7.9% as a long-term rate...if that's what they've got...

what do you need help with?

Clariman

Bismarck wrote: »

I'm with youknowwho and Clariman on this...I do the same with the rate....it's probably a touch more complicated as interest is done a daily basis but there are plenty of people who'd be happy 7.9% as a long-term rate...if that's what they've got...

Hi Bismarck,

The calculator actually does the proper maths to convert a monthly rate into an APR figure - it doesn't just multiply it by 12.

e.g. 0.64 x 12 is 7.68, but the real APR is actually a couple of points higher at 7.96%.

Clariman