A recent thread about financial education got me looking at my CC statement that I downloaded today. It gets paid off by DD every month and all I do is check the entries are correct. i looked further. The balance was £541.44. Minimum payment was £5.41 and estimated interest for next month was £12.93.
Anyone see anything wrong with this? I can’t believe that this is legal but it must be.
Your APR is 28.65%. But only on the unpaid balance. It’s a good reason to pay the balance each month. If not it’s an expensive loan. If you need a loan there are probably better deals available. Some find credit card balance convenient but clearly it’s an expensive way to borrow.
I don’t need to borrow anything but it just dawned on me how the young (and not so young) get dragged into debt. Spend over £500 and pay back just over £5 a month. It almost seems like free money. Most people here are financially literate but how would this look to someone who had no knowledge of finance. Free money indeed.