1. The Arts in Wales – part 2 On a visit to the Plas Glyn y Weddw Gallery, in Llanbedrog near Pwllheli, Carys has fallen in love with a painting. It costs £1600. She wonders if she can afford it. Anne Aspinall: Evening, Porthmadog

2. Paying by credit card Carys thinks about paying for the painting using her credit card. She can pay a deposit of £160 from her current savings, but cannot afford more than £80 each month to pay off the rest. Because she will not pay off her whole balance all at once, she will have to pay 1.8% interest on the outstanding balance each month. a. What is the percentage APR of her credit card? b. How long will it take her to clear this debt? c. How much extra will she pay in interest

3. Paying by credit card Notes: If you pay the first £80 off your credit card bill within a set time – usually 25 days – from the date of your statement, then the interest is only charged on the remaining balance. In this case you would have paid £160 deposit, and then a further £80 leaving a balance of £1360 on which interest begins to be paid.

4. Taking out a bank loan Carys finds out if she can take out a loan from a bank. She will have to borrow the outstanding balance, after she pays the deposit for the painting. However, the bank gives loans in multiples of £100, so she has to take a loan of £1500, rather than £1440. The cheapest loan she can find is advertised at 14.9% APR representative, which she can pay back over twenty-two months. Her monthly payment will be £77.67. How does this compare with the Collectorplan scheme, or paying by credit card?

5. Put it on the card – pay off the minimum – it will get paid eventually…? a) Less than 5 years b) Between 5 and 10 years c) Between 10 and 20 years d) More than 20 years Some people choose to pay only the minimum off their credit cards each month. The credit card rules are: ‘Your minimum monthly payment must be 2% of your statement balance (min. £5, or full balance if less than £5)’ If Carys decided to pay the £1600 on credit card, and then paid the minimum each month off the credit card bill, how long will it take to clear the debt? Is this a good idea?

6. Finally… Is there a way that Carys could combine paying through Collectorplan and her credit card or a small loan, so that she minimises her interest payments? Loan calculator: http://www.online- calculators.co.uk/interest/loanrepayment.php