How do they work out the monthly % interest charge?

Question

i phoned up a car insurance company and as i want to pay monthly asked how much extra it would be for interest etc.

and she said they charge 8.5% credit or debit card charge but couldnt give me an amount.

i wondered how do they work out the 8.5% debit card interest

charge to pay monthly

any ideas what this amount should be? i dont want to get ripped off

thanks

Answer 1

I think you may be confused - you asked the interest fee for paying monthly, but you then quote a debit or credit card charge.

Are you saying that the 8.5% charge is for paying by instalments, or for paying by debit or credit card, or both?

Obviously, regardless of which of these the charge applies to, if your insurance was £200 for the year, with an 8.5% charge on top, it would be £217 altogether.