Why your revolving card balance barely moves
You pay every month and the balance hardly moves. It's not a mistake by your bank: it's how the cuota is split when it's close to the interest.
How your cuota is split
Each month, the issuer works out the interest on what you owe. Your cuota pays that interest first. Only what's left reduces the balance.
At 18 % TIN, the interest on 2.000 € is 30 € a month (2.000 × 0,18 ÷ 12). With a 30 € cuota, all of it goes on interest and the balance doesn't move. Financiera El Corte Inglés publishes a minimum cuota of 30 € at 18 % TIN.
| Cuota a month | Balance reduced in month one | Interest and time |
|---|---|---|
| 30 € | 0 € | The balance doesn't move |
| 60 € | 30 € | 793 € over 47 months |
| 90 € | 60 € | 451 € over 28 months |
Estimate with monthly interest on the outstanding balance and the same cuota every month. Your issuer may work it out differently.
What to check in your contract
Three figures explain almost everything that happens with your card. They're in your contract and on your monthly statement.
- The TIN: the yearly interest charged on the balance.
- How the cuota is worked out: a fixed amount or a percentage of what you owe.
- What happens to an extra payment: whether it reduces the capital or is taken off the next cuota. It varies from issuer to issuer.
What Orwanna does
Orwanna rounds up every purchase you make on your card and, with the multiplier you choose, proposes once a week to send those round-ups to your card. You confirm in the app and at your bank. The money goes from your account straight to your debt. It never passes through Orwanna.
Round-ups add to your cuota. They don't usually clear the debt on their own; the multiplier makes the difference count.