How do I know how much I owe to my friend if I used his credit card and he bought something else too?

Question

I have bought something through my friends' credit card and I have been paying the minimum amount. He also bought something at the same time and he has been also paying something every month, probably the minimum, but now everything is mixed up. I want to know how should I calculate my share of the debt along with the interests and pay him the total amount of what I owe to him.

Answer 1

Assuming he/she pays the total balance each month, simply pay them the actual charge amount prior to the due date so they can pay it off in total.

If they carry a balance or have a rip off credit card that charges them interest from the date of purchase, first recommend to them that they change cards; second, calculate as follows:

Take the monthly interest rate (or the annualized rate divided by 12), move the decimal place over two places, divide the number of days from the date of purchase to you giving them the money (you might add a few for them to actually pay unless they are paying electronically through the internet for example) by the number of days in the billing period (the actual number of days in the billing month).

Multiply the interest rate with the adjusted decimal places by the ratio of days outstanding and multiply by the total purchase amount.

Write the check for that amount.

An example to follow, which assumes a scumbag credit card company or a dumb friend carrying a balance:

Assume you bought something that cost $ 100.

Interest rate is 12% per year or 1% per month.

The charge is outstanding for 10 days out of a 30 day billing period.

12% converts to 0.12.

1% converts to 0.01

10/30 = 0.3333

.01 * 0.3333 * 100 = $ 0.33 interest

Add $ 100 plus the interest and write a check for $ 100.33.

BRW, you have a very good friend to let you do this.

Answer 2

This is a complicated question because to get an exact amount of interest, you will need to know the dates of your purchases and amounts and the exact amount of interest he was charged. A simple way, NOT EXACT but will be close is to add up your purchases & subtract your payments from this amount. Then, find out what his interest rate is and calculate interest as follows:

Net amount from above (purchases less payments) times interest rate (as a percentage). Ex: if his interest rate is 18%, multiply by .18. Divide this # by 365 (for # of days in the year) and multiply the result by the # of days since your first purchase (for example, if you bought it 6 months ago, use 180 days. If you bought it two years ago, use 730 days). This should get you close to the amount of interest you owe. As I said, this will not get you an exact amount. For exact amount, see an accountant..... :o). In fact this may be a little lopsided in your favor if you have had this charge outstanding for awhile as most credit cards charge compound interest (interest charged on interest). So, if you have owed this for awhile, I suggest adding a little extra to your "payoff" for his trouble so everyone feels they have been treated fairly.

Answer 3

in basic terms one card is sufficient. Too many playing cards probably will strengthen your debt fairness ratio in case you carry balances. Get in the habit of not charging greater effective than 50% of your card cut back and paying it off on time and in finished. particular as quickly as you have began to be certain this habit, your credit that's very much impacted by way of your charge historic previous will paintings favorably while potential loan/loan creditors evaluate your application. however if youre credit is rather new, creditors would be a lot greater probable to grant you the published rated. in the journey that your credit is staggering you will delight in below published expenditures.

Answer 4

You should go by your original receipt, and read on his bill the amount of interest being charged and go from there.

Answer 5

look at the bill together and see who bought what.. and u should always keep rec at less a year then trow them away