Help with Interest Rates - Barclaycard

dsm123

Hi there,

I managed to get barclaycard to reduce my interest rate to 6.9% APR until the balance of 2031.72 is repaid in full. I have it in writing that this is the case

The original rate was 21.9%

I still seem to be getting charged the full amount of interest as on my last statement the interest was.....

Interest On Your Standard Balance
INTEREST 1.667%67.35

Interest On Your Cash Balance
INTEREST 2.075%

1.07
and on next months the estimated interest is £33.91, am I calculating this wrongly or is this more than 6.9% APR

I am sure they have it wrong somewhere along the line and I am not sure what the hell is going on.

Any help would be appreciated

save-a-holic

Hi

According to my calculations (although I'm no Accountant) 6.9% should be £11-£12 a month. I'd phone them up to query this.

Also, can you please tell me how you managed to negotiate this interest rate because my Barclaycard is currently £3,500 and 21.9% so if I could get an interest cut it would help me enormously!

Thanks

Marie

Bismarck

Hi, agree with save-a-holic but would suggest that estimated interest is often misleading as it can disregard offers that are in place. You need to call them and hopefully get to speak to a UK operative otherwise I can see your conversation being less straightforward!

NickX

Yes Save-a-holic is correct -

£2031.72 * 0.069 = £140.19 per annum

Therefore £140.19 / 12 = £11.68 per month

It looks as though they haven't applied the new rate to the estimated interest figure. Definitely call them up to make sure they honour their agreement with you.

Milarky

I've got a feeling that when Barclaycard does something like this (to change the rate on existing balances) that they don't make the changes until the one full statement period after. In your case, if they wrote to just before this statement was produced, I would assume the changes took effect from the statement but won't show yet

(In effect, the next statement was already 'prepared' before they agreed the changes with you - something they could not override)

Good Luck

NickX

This is a possibility, but I would still definitely phone them to double check they have applied the promotional rate before the next statement is produced.