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Credit card interest.

Community Veteran
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Registered: 02-08-2007

Credit card interest.

Say you have the sum of £ 1,000 outstanding on your credit card and you make the minimum payment each month how long will it take you to clear the balance ?
To answer the question you would need to know the current rate of interest but go on have a guess how long it would take to pay off ?

5 years ?
nope.


10 years ?

nope

15 years

nope

The answer is,

18 years and 4 months.
And the total you would pay back is £ 2,263.

Source of information, Halifax credit card terms and conditions, booklet CCNOVHFX  03/16    page 10
13 REPLIES
alanj
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Re: Credit card interest.

It's not just the interest rate that's significant - you also need to take account of how the minimum monthly payment is calculated. This varies between different card providers.
A useful calculator is here: http://www.cardcosts.org.uk
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Re: Credit card interest.

Thankfully I have never paid interest on a credit card Cool
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Re: Credit card interest.

That's why I have 3 credit cards and shift between them making use of the interest-free balance transfer periods on them meaning I am always paying back what I owe and not paying the card companies interest.

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Re: Credit card interest.

I have no interest in credit cards. They are the shackles of the chains of a capitalist society encouraging the main populous to go into perpetual debt.
Now Zen, but a +Net residue.
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Re: Credit card interest.

It is estimated that around one third of users pay the full amount each month.
@AA,
So how do you pay for things. ?
Bit dodgy to carry around large amounts of cash these days.
Some petrol stations near us are card only and I guess it will not be long before more things go that way and we end up with a, ' cashless society' in more ways than one.
Smiley
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Re: Credit card interest.

Preference - Gold Sovereigns carried by an aide, failing that cash, a cheque or as a last resort my Bank Debit card.
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Re: Credit card interest.

I've noted a distinct reluctance on the part of many traders to accept my sovereigns as payment for goods and services.
One therefore have to offer cash or a Debit Card.
So common Embarrassed
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anniesboy
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Re: Credit card interest.

For me using a credit card is a no brainer.
Protection when purchasing something over £100.00
Plus between 1% and .5% cash back on purchases
rongtw
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Re: Credit card interest.

I haven't got a Credit card  Wink nor do i want one , and getting annoyed at the amount of Offers for them that come with the    postman  Tongue
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Re: Credit card interest.

I use a credit card but always settle my bill when the statement arrives. it is more for the convenience and the protection it gives me.
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Re: Credit card interest.

Quote from: anniesboy
For me using a credit card is a no brainer.
Protection when purchasing something over £100.00
Plus between 1% and .5% cash back on purchases
Fully agree providing you can pay them off in full each month.
peter10
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Re: Credit card interest.

I rarely pay with cash now. I use three different cards. One that gives cashback is for everyday shopping. One with a low credit limit I use for internet shopping and the third one that doesn't charge a non sterling transaction fee is used abroad. Direct debits are set up to pay them off in full each month as the interest rates are excessive. Like anniesboy I use cards for anything over £100 because of the protection of section 75 which I've had to use once in the past. As some firms charge to use a credit card if it is possible I pay a small amount with the credit card to get the protection and the rest with a debit card.
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Re: Credit card interest.

I don't know if others have found this but....
When buying more expensive (+£50) things in shops I never have any problems in getting a percentage knocked off when paying by cash.
Not so good if I mention paying by credit card.
So even taking into account any credit card offers I save far more paying with cash.