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Old 16 February 2009, 11:57 AM
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Al9
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hi all,brother needs some advice.he has borrowed money from a friends credit card that the friend wasnt using as it stands he owes £1390 with the interest being £38 per month(ie for next month) i worked that out at 31%APR(could be wrong maths not my strong point). Well the friend wants to start using the card and has agreed that my brother can pay monthly his bit until it is paid off.But the help he needs is if he pays £80 per month how long will he be cleared ie months. next payment due march 5th 2009.???is there an equation to work it out. Any help appreciated. Al
Old 16 February 2009, 12:03 PM
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Timwinner
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Without doing hard maths and knowing the exact details of the card it will be approx two years.
The problem will arise when his friend starts to use the card and in the interest is calculated on both debts.
Old 16 February 2009, 12:04 PM
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HankScorpio
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Two years according to this:



From:
Calculator: Credit card reality check | This is Money

Last edited by HankScorpio; 16 February 2009 at 12:06 PM. Reason: Used wrong numbers
Old 16 February 2009, 12:08 PM
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NotoriousREV
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Sounds like your bro would be better off getting a loan to pay his mate off then paying that off. But then again, I'm guessing he hasn't got a good credit rating if he's borrowing his mates credit card.
Old 16 February 2009, 12:08 PM
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RJMS
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That's a nasty interest rate - something like 2.7% per month, on that basis assuming that this month is month 1, £80 per month paid and no interest rate change I think he's looking at clearing the debt in month 27.
Old 16 February 2009, 12:15 PM
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Al9
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yes he has got bad credit rating he hasnt had a cc before or loan so is not a bad debtor.So it will take 2 years thanks for that. i was contemplating paying it off for him and he pays me back just that my partner found out she is pregnant (on valentines day) so dont want to leave my self short, but i am still thinking about it.The 2 years figure 24 months i will let him know. thanks
Old 16 February 2009, 12:35 PM
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David Lock
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Would this work?????

His friend (or you) get a Virgin card and your brother pays the 2.8% for a balance transfer to Virgin. This is then interest free for 18 months and he can just pay the sum off interest free in that time??

Congratulations on your Valentine Day's news btw dl
Old 16 February 2009, 12:43 PM
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j4ckos mate
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niether a borrower or a lender be.
Old 16 February 2009, 01:21 PM
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andy1505
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Hate to say this but interest will be charged on the whole amount on the card. So he will incurr interest charges on the money his friend spends. It is only interest free if you clear the bill each month. IIRC.
Old 16 February 2009, 02:15 PM
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hodgy0_2
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interestingly i have been offered a couple of 0% transfer deal in teh last couple of days

and one had a 0% fee to boot
Old 16 February 2009, 03:40 PM
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dsmith
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Your brother's mate needs to tell your brother to get it paid off immediately. God knows at what point using someone else's card seemed like "a good plan".

When you pay a cc bill the payment (in broad terms) goes against the oldest debt. So if your brother is maintaining a debt on the card he is only paying off slowly and the mate uses the card. The mate will never get the normal few weeks interest free to pay his own debt off.

So he will be incurring interest form the moment he buys something regardless of whether he intends to pay his spending off every month.

There was a an article in the paper a while back where they got 3 professional accountants to calculate the interest due for a given credit card and spending. None of them got the same answer...or what had been charged by the card issuer. So i wouldnt put too much faith in S'net. And if I were the mate I would make sure the only person spending on *my* card against *my* name was me. (or at a push the Wife!)
Old 16 February 2009, 03:43 PM
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pimmo2000
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Originally Posted by j4ckos mate
niether a borrower or a lender be.
Useful now
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