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CC interest charges

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I got a Virgin credit card last year with 0% interest for 9 months on balance transfers. Since moving money onto the card I've been paying it off at between 50 and 350 each month and have not put any purchases onto the card. The only charge going on each month is the Repayment Protector (RP) which incurs interest which is okay but I can't fathom why when the balance, and RP charge go down each month, the interest charged goes up. It's only pence but it's something I'd like to understand.

Month Balance RP Interest Nov 1,786 12.86 0.09 Feb 1,007 7.25 0.44 Jun 205 1.48 0.73

Does this make sense to anyone? If so could you explain it to me in layman's terms?

thanks for any help here.

Reply to
nonameman
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In message , nonameman wrote

You have paid nothing off the Repayment Protector part of the bill. Virgin are putting these payments on your card but you are only paying off the original interest free part of the bill. You will not start paying off any amount that attracts an interest payment until you have cleared, in full, the interest free part of the bill.

You would have been better off just paying the minimum amount each month on the card while it is interest free and putting any money over the minimum payment into an instant access savings account paying 4.5%+ . BEFORE the end of the 9 month interest free period transfer the money in the savings account to pay off the credit card bill.

Reply to
Alan

The sneaky so 'n' so's LOL

Thanks for the explanation.

Reply to
nonameman

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