Egg Card

Neenan

Folks

I have credit card debit of about £3k of which i may the minimum repayment each month of £63.61. On my statement there is a bit that says"MERCHANDISE INTEREST AT 1.313 PER MONTH" and has a £43.32 figure next to it. I have no idea what this is.

Can someone please tell me:
1. what the £43.32 is and why im paying it
2. how do egg work out the interest charges, and out of the £63.61 i pay each month how much is paying interest.

Any help is apprecaited as there website is not making sense to me.

Many thanks in advance

ilikewatch

I'm sure someone more knowledgable than myself will be along soon, but in the meantime, I would suggest that "merchandise interest" is the interest that you are paying on purchases/balance xfer fees.

marvin

Neenan wrote: »

Folks

I have credit card debit of about £3k of which i may the minimum repayment each month of £63.61. On my statement there is a bit that says"MERCHANDISE INTEREST AT 1.313 PER MONTH" and has a £43.32 figure next to it. I have no idea what this is.

Can someone please tell me:
1. what the £43.32 is and why im paying it
2. how do egg work out the interest charges, and out of the £63.61 i pay each month how much is paying interest.

Any help is apprecaited as there website is not making sense to me.

Many thanks in advance

In order to get that amount of interest your balnce must be aroun £3300 this being the mothly rate of interest that you pay on your card (about 16% per annum)

As I understand Egg they reduce the balance on the lowest interest rate first after the interest so the £43 is taken first the rest reduces your balance.

Although been a long time since I looked at the egg T&C.

CLAPTON

so of your 63.61 per month, 43 is interest and 20 is repaying the capital

if you continue to pay 63 per month it will take you 6 years to pay the debt off and you will pay 1660 in interest.

if you only pay the minimum each month (i.e. a reducing amount) then it will take over 10 years and a lot more interest.