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Cahoot Loan Interest Question

Before I start jumping up and down and potentially make a fool of myself, what's the general opinion of MSErs on this?

I have a £10K cahoot flexible loan facility and only draw on it now to facilitate cheaper deals on my credit card.

So here's the score:

30.08.05 - £14.81 payment was made so the balance was brought to nil

05.09.05 - withdrew £9325.07 to faciliate a credit card deal

15.09.05 - interest of £23.43 charged (fair enough), balance is now £9348.50

21.09.05 - repay £9325.07

30.09.05 - regular payment of £200 is taken (again fair enough as dd had already been called for)

As a result of the above payment the balance was £176.57 in CREDIT.

30.09.05 - withdraw £176.57 bringing the balance to nil.

I've received my statement for October and I've been charged £14.07 interest. :mad:

Is that fair???
2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310

2nd Purse Challenge:
£15.88 saved to date

Comments

  • johnllew
    johnllew Posts: 1,928 Forumite
    Looks pretty fair to me. You incurred £23.43 interest on £9325 owed for around 10 days - £2.34 per day. The interest rate works out close to 9% per annum - pretty competitive for an unsecured loan.

    You then owed £9325 for around 6 days @ £2.34 per day = £14.04.

    Why do you think it is wrong?

    (I don't think they pay you interest if your flexible loan a/c is in credit)
  • Thanks for that...actually my rate is 9.9% so well done on the maths side of things!

    I wasn't saying it wasn't fair I just want to make sure that I wasn't going to make a fool of myself by questioning it.

    So I'm sort of happy ....
    2014 Target;
    To overpay CC by £1,000.
    Overpayment to date : £310

    2nd Purse Challenge:
    £15.88 saved to date
This discussion has been closed.
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