Minimum Payment Calculator
We are all faced with many commitments that we have to fulfill on top of having to worry about keeping up to date with credit card debt payments. For this very reason, many people that have credit card debt are usually seen paying the mere minimum to ensure that they are able to meet other payment commitments as well. What most people don't realize is the fact that in doing so, they are obliging themselves to longer payment periods which in effect means paying more in interest. Changing to a fixed monthly payment that is slightly above the minimum payout can drastically reduce the number of years it would take for the entire debt to be cleared.
This is where the minimum payment calculator comes in to play. The minimum payment calculator has specifically been devised to help ordinary folk like yourself and I. All you are required to do is simply enter in a few numbers based on your own personal situation. The information that is required is no sensitive at all. The only information that is needed for this particular calculator includes your current credit card balance, annual interest rate, the minimum amount you are paying and a possible fixed monthly amount that you could pay. After having entered all this information, all you have to do is simply click calculate and the rest is taken care for you. The minimum payment calculator will help identify how much money you can save by moving to a fixed monthly payment.
SAMPLE: Let's say you have a $10,000.00 balance on a credit card with a 17.500% APR. If your minimum payment is $300.00 and that is all you pay each month, it will take you 18 year(s) and 5 month(s) to finally get that card paid off (assuming you don't add anymore debt to the balance). You will have also paid $6,051.82 in interest alone.
If you send a fixed $350.00 payment, on the other hand, this extra money will make it possible for you to pay off that same balance in just 3 year(s) and 2 month(s) - that is 15 year(s) and 3 month(s) sooner than if you paid just the minimum payment. You will also only pay $3,030.01 in interest, saving you $6,051.82.
More Financial Calculators
- Credit Card Tips For Beginners
- Is Discover It For Students A Good Choice?
- Capital One Spark Miles for Business Card Review
- Credit Card Rewards History
- Benefits of Visa Platinum from Credit One Bank
Credit Card FAQ
- How Do I Get The Best Credit Card Deal?
- How Do I Get Out of Credit Card Debt?
- Do I Need Credit Card Insurance?
- Can a Collection Agency Sue You?
- How Do I Transfer a Credit Card Balance?
- More at: Credit Card FAQ