INTEREST CHARGE EXPLANATION FOR NEXTPAY CREDIT ACCOUNTS
The annual interest charge is currently 24.9% (variable).
If your outstanding balance is not repaid in full, by the time your next statement is produced, you’ll be charged interest on the whole of that balance.
Each statement has an opening balance (shown as ‘previous balance’ on the statement) and a closing balance (shown as ‘present balance’). The closing balance on one statement will always be the opening balance on the next.
If you do not repay the full amount of the closing balance by the due date on a statement, interest will be charged and will show on the following statement. Interest is calculated each time a statement is produced and is charged on any opening balance, regardless of the value of any payments made before it is produced.
A detailed example of how interest is calculated is shown below
Example of interest calculation for nextpay
Interest is charged when a statement (Statement ‘B’) is produced assuming the closing balance has not been paid in full on the previous statement (Statement ‘A’).
The amount of interest charged on Statement ‘B’ (at the annual interest rate of 24.9%), is worked out in 2 parts:
For each individual item ordered (and not returned under our returns policy) in the month prior to Statement ‘A’ being issued; interest is calculated from the day after the item was expected to be delivered* to the date of Statement ‘A’. If no such orders were placed in this period, Part 1 does not apply.
In relation to the closing balance of Statement ‘A’; interest is calculated from the date of Statement ‘A’ to the date of Statement ‘B’.
1 item ordered on 1st November for £100, and due to be received on 2nd November. So the individual daily interest charge begins on 3rd November, up until 13th November (when the item appears on Statement ‘A’).
£100 x 0.611% (10 days interest*) = £0.611
Opening balance of statement ‘B’ is £100. £100 x 1.844% (30 days between 13th November and 13th December = £1.844
* The date from which interest is calculated may differ for some items. Please check your credit agreement for full details.
INTEREST CHARGE EXPLANATION FOR NEXT 3STEP CREDIT ACCOUNTS
The annual interest charge is currently 29.9% (variable).
You can spread the cost of purchases on your Account over three monthly payments without incurring interest on these purchases, providing each month you make at least the 3Step Payment shown on your statement by the date set out in your statement.
If you do not make the 3Step Payment in full and on time, all purchase balances will move to the Standard Rate Balance and interest will be charged (based on average daily balance) on the Standard Rate Balance, at the Standard Rate, from the date of your previous statement until the date of your statement.
Standard Rate Balance will continue to be charged at the Standard Rate until this has been repaid, although new purchases can be spread over three months without incurring interest as outlined above.