This handy credit card payoff calculator can help you find out how much you are really paying for using your credit cards and how long it will take you to pay off your balance.
Consumer Reports Surveys show that only about 54% of cardholders pay their balance in full each month. In fact, according to CardWeb.com, the average American owes $10,700 in credit card debt. In addition, you can add compound interest and late fees to this amount, causing the balance to continually grow and become very overwhelming.
The first step to eliminating credit card debt is to stop charging expenses, especially on high interest cards. According to the National Foundation For Credit Counseling, more than 30% of cardholders do not even know the interest rate being charged on the credit card they use the most. Since rates can vary from 12%-28%, depending on the credit company and type of card, this can make a significant difference in the cost of use, particularly if you carry a larger balance.
If you want to reduce your credit card debt or pay off your balance, this calculator can show you how long it will take to reach your goal and how much interest you will pay along the way. Of course, the figures are only valid if you stop making charges on your card and will not include additional fees that may be charged by your credit card company on a monthly basis.
The calculator is also a great tool to motivate you to pay down your debt faster. Play with the figures and find out how much making even a little extra payment can reduce the time period and save you a lot of money.
For example, if you have a $5000 balance on your card and make the minimum payment of $100, it would take you 70 months to pay off your debt and cost you an additional $1,966.18 at 12% interest.If you are able to increase the payment to $200 per month, you would reduce the time down to 29 months and the interest payment to $782.44. That is a savings of 41 months and $1,183.74.Even adding just $50 a month can shave 29 months off your payment schedule and save you $853.70 in interest.
The free credit card payoff calculator can show you how much your credit cards are really costing you and motivate you to put a few dollars extra toward reducing your balance.
It can also help you create a debt reduction plan by giving you a time frame to work within and a manageable payment amount that will allow you to pay your debt off faster and save you hundreds of dollars in interest charges. Use this together with our free online household budget calculator to get your life back on track!
The calculator is very easy to use. The instructions that are above the calculator are very informative and helpful with suggestions on how to use the calculator.I even clicked on the household budget calculator link and I think that is a great tool to make available to people also.
I believe that the credit card payoff calculator is a great tool for everyone to see where they stand, what they can afford, and what the long term will look like. This is something that I would certainly use.
Posted by: Noreen
How to Use the Free Credit Card Payoff Calculator:
This user friendly calculator requires only 3 things: that you know your balance, your interest rate, and how much you are willing or able to pay toward your debt each month.
Simply enter these figures into the indicated spaces and click the “compute” button. To change the amounts, click “reset” and enter new figures.
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The calculator will do the math and display the payment schedule, payment amount, and the total interest you will pay for the number of months chosen.
Please note: This calculator requires javascript to be enabled in your browser.
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