Credit Card Payment Calculator
According to government statistics, the average American household that carries debthas over $15,000 in credit card balances. That equates to hundreds of dollars in interest over time that compounds quickly. By utilizing the credit card payment calculator, you can figure out how much money to apply to monthly payments to payoff each of your credit card balances.
Credit Card Payment Calculator [Enter Number]
How Long Will It Take To Payoff My Credit Card Balance?
The interest rate on your credit card account and the monthly interest charges you incur have a lot to do with the length of time it will take to payoff the entire balance of your credit card account. The size of the payment you make each month will also affect the balance. By paying just the minimal amount, you may be scarcely making a dent in the principal and wracking up more interest that gets carried over from month to month.
How Much Should I Pay Each Month Toward My Credit Card Bill?
The short answer to this question is-as much as you can. Every month you carry a balance on your credit card you spend money in interest. This gets added to the existing balance that rises every month then gets applied to the new balance. If only the minimum payment is made, a viscous cycle begins. Once the credit card balance begins to grow, it’s hard to get control over it without taking some very definite steps. By paying over the minimum monthly requirement even a small amount, you help reduce the compounded interest for the future
Is It Okay To Borrow Money On a Credit Card?
Though you may be able to find 0% introductory interest rates on credit cards for limited periods of time, it’s always critical to examine the fine print and any special conditions that could cause your credit balance to escalate quickly. It’s possible to pay 0% for a period of 6 months, for example, only to be caught off guard when the interest rate jumps to 15% at the end of the promotional period.
Professional financial advisors generally agree that borrowing money on credit cards is a very expensive option and doesn’t make the best financial sense. The major reason so many of us choose to do so anyway is-
convenience. The ability to access money quickly as needed is the appeal of credit card accounts.
What Is APR?
The acronym, APR refers to theAnnual Percentage Rate,which is the interest rate at which you borrow money for loans or credit cards. The APR considers the interest rate, the frequency it is charged, and any initial fees and costs that affect the credit account or loan. While credit cards generally carry higher APR’s because they are unsecured lines of credit, many offer promotions or competitive interest rates for limited periods.
While we make every effort to ensure the accuracy of the credit card payment calculator tool, we are not liable for damages, whether monetary, incidental, consequential or otherwise in connection with its use. The calculator tool is not intended as a replacement for professional independent financial advice.