I had a credit card debt of $5706.44 as of my January 2007 statement. I have paid $400 a month for the past six months equaling $2400. My last statement as of July 07 was $4028.78. This means I have paid $1677.66 on my principal. What is my interest rate? Is the bank taking me for a ride?
Your interest rate cannot be determined based on what you've given, because the timing of your payments can greatly influence the amount of interest you're paying. The earlier in each payment period you make your payment, the lower the interest charge will be on your next bill, but your periodic card account statement or bill should indicate clearly the Annual Percentage Rate you are paying. Federal law and regulation require that it be stated clearly and conspicuously on your periodic statement. It will probably be somewhere around 18%.
Credit card accounts tend to be more expensive than other forms of credit, whenever you carry a balance from month to month on the card account. There can be exceptions when a card issuer is offering a promotional rate. Your best bet is to review your most recent statement for the Annual Percentage Rate, and compare it with other card issuers' rates. An even better idea is to pay your credit card balance down as quickly as you can comfortably do it. The faster you pay off the balance, the lower your overall interest cost.
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Your interest rate cannot be determined based on what you've given, because the timing of your payments can greatly influence the amount of interest you're paying. The earlier in each payment period you make your payment, the lower the interest charge will be on your next bill, but your periodic card account statement or bill should indicate clearly the Annual Percentage Rate you are paying. Federal law and regulation require that it be stated clearly and conspicuously on your periodic statement. It will probably be somewhere around 18%.