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So I am in Canada, and I have a couple of credit cards I used to use often when I was working. But now, I am off work due to illness, and my medical EI has been all used up. I am in the process of trying to apply for disability. My counselor and psych are both willing to help me get it, and will sign all papers and write letters so that I do get it. Even when all is said, done, and applied for, I'm looking at one to three months before I start receiving money.

There is something I am in need of purchasing that is around $300. I don't understand how credit works, really, as I always used them to get the rewards, and would just pay them off completely after each pay check. So I'm left wondering right now if it would be a bad idea to use credit when my finances are unstable, or if I should try and borrow money from my brother and friends etc. (which I'd rather not have to resort to).

So. If the interest says it's 20%, that is the yearly amount, yes? So how much interest would I be charged on a monthly basis for $300? And say I can pay it off completely within 6 months, how much would it cost me total? I just don't fully understand how this credit thing works.

Thank you for any help.

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It's 20% annually, which is 0.054% per day, which is about 1.62% per month. So you'll be charged 1.62% of $300 the first month, which is $4.86. And presumably that will go down as you pay it off each month. So depending on how you pay it off, you'll probably end up paying 20 - 24 bucks or so over 6 months to borrow that money from the credit card company.

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