Need help in calculating interest (credit card debt, loan, debt, payments)

[midwestmom]

It's something I should know but have forgotten, Principal X Int rate X Time?. I'm wanting to pay on a debt and want to be sure it's correct. Somehow I don't think this should come to almost $300 interest.

Anyway..I owe $1,100 for 8 months at 9%.

Thanks

[sterlinggirl]

$1100 x .09 = $99 annual interest

Easy Method
$99/12 months per year = $8.25/month
$8.25 x 8 months = $66

More Accurate Method
$99/ 365.25 days per year = $0.27104723/day

[midwestmom]

Sterling Girl,
Thanks so much. It looks like I've been way overcharged...only now I have the correct information to prove it.

[harry chickpea]

sterlinggirl, you are not taking into account the depreciating amount owed each month.

If the total amount being paid is $8800 (1100 x 8 mo), then the original amount owed is about $8,300 and the interest is in fact a little less than $300 (about $277).

[sterlinggirl]

Originally Posted by harry chickpea

sterlinggirl, you are not taking into account the depreciating amount owed each month.

If the total amount being paid is $8800 (1100 x 8 mo), then the original amount owed is about $8,300 and the interest is in fact a little less than $300 (about $277).

I didn't have that information to work with, so I assumed no monthly payments were made.

The thing I did forget was compounding....

[harry chickpea]

It was phrased oddly - "Anyway..I owe $1,100 for 8 months at 9%"

I initially thought a total of $1100 was owed, then I reread it. Working backwards, I came up with the +- $8300 initial principal.

[midwestmom]

I appreciate your help - to clarify a little better. The total amount I still owe is $1,100 plus interest @ 9%. I'm not sure about compounding and have to double check the start date for the interest. I had made some payments during the past year which brought the debt down to $1,100 but the interest due is confusing me.

i.e. (guesstimates - full bal due $2500

2 weeks later paid $100 - bal is 1,500
2 weeks later paid $150 - bal is 1,350 etc 5 months of biweekly payments.


Payments were able to be put on hold for a 6 month "grace period" and now balance is $1,100 (roughly).

I had thought I just paid the interest on the most recent total balance and now I'm really confused. The 6 month "grace period" is up and they claim over $300 interest which I figured covered that 6 months I owed $1,100. All together its been only 1 year since the start date/full bal was due.

I hope this makes sense.

[suzie02]

Originally Posted by midwestmom

I appreciate your help - to clarify a little better. The total amount I still owe is $1,100 plus interest @ 9%. I'm not sure about compounding and have to double check the start date for the interest. I had made some payments during the past year which brought the debt down to $1,100 but the interest due is confusing me.

i.e. (guesstimates - full bal due $2500

2 weeks later paid $100 - bal is 1,500
2 weeks later paid $150 - bal is 1,350 etc 5 months of biweekly payments.


Payments were able to be put on hold for a 6 month "grace period" and now balance is $1,100 (roughly).

I had thought I just paid the interest on the most recent total balance and now I'm really confused. The 6 month "grace period" is up and they claim over $300 interest which I figured covered that 6 months I owed $1,100. All together its been only 1 year since the start date/full bal was due.

I hope this makes sense.

Do you have statements? Do they show how much interest you were charged each time?
How do you not know the full balance? Is this a cc? Did you keep charging on it? If so the new charges probably are at a much higher interest rate.

[harry chickpea]

Originally Posted by midwestmom

I appreciate your help - to clarify a little better. The total amount I still owe is $1,100 plus interest @ 9%. I'm not sure about compounding and have to double check the start date for the interest. I had made some payments during the past year which brought the debt down to $1,100 but the interest due is confusing me.

i.e. (guesstimates - full bal due $2500

2 weeks later paid $100 - bal is 1,500
2 weeks later paid $150 - bal is 1,350 etc 5 months of biweekly payments.


Payments were able to be put on hold for a 6 month "grace period" and now balance is $1,100 (roughly).

I had thought I just paid the interest on the most recent total balance and now I'm really confused. The 6 month "grace period" is up and they claim over $300 interest which I figured covered that 6 months I owed $1,100. All together its been only 1 year since the start date/full bal was due.

I hope this makes sense.

No, this is getting confusing and is not making sense.
Your starting amount due was $2500 and you paid $100 and the balance became $1500??? That makes no sense.

Roughly, if the total amount you owe is $1100 and you pay it off with equal monthly payments over a total of the next 8 months, you should be paying about $30 total in interest for the period.

What it sounds like is that this is some sort of payday loan, rent to own, or credit card debt that has added fees or penalties. You just aren't providing enough valid info for anyone here to help.

You need to fill in the blanks.
What was the original amount of the loan?
What was the date it was taken out?
What was the stated ANNUAL interest rate?
What is the TOTAL you have paid against the loan?
What are the penalties for late and/or missed payments?
What are the exact dates and amounts of your payments?

This is a math problem, and giving roundabout figures and dates makes it worthless to try to figure it out. Gather all the statements and form them into a start to finish list of amounts owed, paid, dates, and list out any fees. If you don't have the paperwork to do that, ask for a complete statement of account from the company.