Help me figure out my credit card bill...?

Question

This is the first month that I'm not going to be able to pay off my credit card in full. There is going to be about $300 left on there after I pay off what I can. It says online that the 'Periodic Rate' is 0.03534%P, and that the 'Corresponding APR' is 12.90%. How much does this mean I will have to pay in interest next month when I pay off my card in full? Also, could you tell me how to figure this out on my own so that I can do it next time I can't pay off my card again?

The reason I won't be able to pay off the bill this month is because I haven't gotten paid for several under the table jobs I've worked at, and my new employer needs me to go in and fill out more tax information before I get my paycheck.

Answer 1

With an APR of 12.9%, you pay about 1.075% in interest each month (12.9 divided by 12 months). Assuming a balance of $300, that would mean approximately (300 * .0175) = $5.25 in interest for the month.

As bdancer222 said, the precise calculation is based on a daily calculation so the above formula won't be exact but it will be close.

If your card uses the "two cycle average daily balance" method of computing finance charges, it's possible you will also be charged interest for the previous month's purchases even though you paid in full. Most credit card statements I receive include a description of how they compute your finance charges on the back of the statements.

Answer 2

I am not sure how to calculate the interest payments. But, if you are unable to pay the full amount like you would like, then you should at least pay the minimum payment. Then if possible pay the interest rate additionally, which would be shown on your statement.

Answer 3

It's almost impossible to figure the exact interest since it calculated based on you average daily balance.

Multiply balance by your periodic rate. The actual interest will be less than that. But that will give you a rough budgeting figure.