There is an easier option. Just sign up to an automated system which tells you when your 0 APR period is coming to an end (it sends you an email) and then allows you to transfer the complete balance to a new 0 APR card. By this means you can have zero interest for years and years. It's at www.credit-card-transfers.co.uk

Gordo

Sorry our credit card expert has been away on business over the last few days... but I'm glad our users stepped in to assist your cause Zoe. If you have any more follow-up questions, please feel free to write on the forum again.

Paul Lucas - Rate Alert editor

Hello there,

Thankyou for the workings out of interest.

The monthly calculation of interest does appear to be much easier to understand.

I will now be able to work it out myself.

Kind regards.

Zoe.

Hi Cat,

Thanks for the tip.

I am new to the forum as you can see, so I really do appreciate any good advice.

Zoe.

Zoe,

It is easier to calculate your interest on a month by month basis. The interest you pay in a month depends on the repayment you made in the previous month.

6.9% per year equals 0.56% per month.

Therefore in the first month you will pay

£6750 X 0.56% = £37.80

Assuming you make a £200 payment in the first month, your month end balance is

£6750 + £37.80 - £200 = £6587.50

Next months interest is

£6587.50 X 0.56% = £36.89

and so on.

Hi Zoe

Might I make a quick suggestion?

It's very hard to read a message that is all in capitals (the internet equivalent of shouting) and without paragraphs. I've found this site very useful and helpful and I am sure you will get a swift andhelpful response which will encourage you to stick around. If so, could I just politely suggest not hitting 'caps lock' but 'return' instead?

I'm not trying to be rude - I use a few forums and I know it can be tricky to get the hang of them at first, so I thought I would just suggest.... Please don't be offended.

Cat

PLEASE COULD ROBERT KENLEY ( MONEY EXPERT) ADVISE ME ON THE FOLLOWING:
HOW LONG HAVE CREDIT CARD COMPANIES BEEN CHARGING A HANDLING FEE ON BALANCE TRANSFERS? I KNOW ITS BEEN A WHILE NOW BUT I AM JUST CURIOUS. IT SEEMS TO BE BETWEEN 2% AND 3%. IT RECENTLY COST ME £201.75 TO TRANSFER £6725.00 TO MY HALIFAX CREDIT CARD! I WORKED IT OUT THAT I WAS NO BETTER OFF HAD I STUCK WITH THE LOW INTEREST RATE I WAS ON. THEREFORE THEY WERE NOT GIVING ME A GOOD DEAL AT ALL. IT WOULD SUIT PEOPLE WHO ARE PAYING HIGH RATES OF INTEREST BUT I ALWAYS SHOP AROUND FOR A LOW RATE. I HAVE NOW BEEN OFFERED A 0.9% FOR 6 MONTHS TO TRANSFER A BALANCE TO MBNA WITH A MAXIMUM HANDLING FEE OF £75.00. IF PEOPLE ARE NOT CAREFUL, IT COULD COST THEM MORE IN HANDLING FEES THAN IN INTEREST! I HAVE BEEN OFFERED A LIFE TIME RATE OF 6.9% UNTIL PAID IN FULL. I HAVE CALCULATED AS FOLLOWS: BALANCE £6750 x 6.9% = £465.75 DIVIDED BY 12 MONTHS = £38.81 PER MONTH INTEREST. IS THIS THE CORRECT WAY TO WORK OUT INTEREST AND IF NOT COULD YOU PLEASE SHOW ME HOW TO WORK IT OUT. IT IS VERY USEFUL TO KNOW FOR THE FUTURE. I HAVE ENQUIRED WITH A FEW COMPANIES HOW TO WORK INTEREST OUT AND I AM VERY SURPRISED THAT THEY HAVE NO OR LITTLE KNOWLEDGE OF HOW TO DO IT. THEY TEND TO TELL THAT THE MONTHLY AND THE APR RATES CAN BE FOUND ON MY STATEMENT WHICH I ALREADY KNOW, BUT THE STATEMENT DOSENT ACTUALLY SHOW YOU HOW THEY GET THE INTEREST FIGURE WHICH YOU HAVE TO PAY. ANY ADVICE WOULD BE MUCH APPRECIATED. KIND REGARDS. ZOE.