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Free Online Credit Card Payoff Calculator

This simple calculator can help you figure out how long it will take you to pay off your credit card debt by making minimum payments or by making additional payments over the minimum. It will also tell you how much you will end up spending on your debt, including interest. The results can be pretty surprising and dramatic, and once consumers understand how credit cards work, they may be able to handle them a lot more wisely.

Here’s the credit card payoff calculator, and the instructions about use are below:

Using the Credit Card Payoff Calculator

This gives you an opportunity to see how long it will take to pay off a credit card bill by applying a fixed amount or the minimum payment. These are the fields explained:

  • Current balance: This is how much you owe on your credit card today.
  • APR: This is the annual percentage rate that the finance company charges you for your outstanding balance.
  • Minimum monthly payment estimate: All credit card companies are different, but this estimates common ways that they calculate minimum payments.
  • Additional payment each month: If you can afford to add a little extra that is above the minimum payment, you enter that here.
  • Fixed payment: Instead of worrying about the minimum payment, just enter what you can afford to apply to your payment balance here.

Here’s an example of using the credit card payment calculator. It demonstrates why this free tool can be so educational for people who are trying to pay their debt off.

  • Let’s say you owe $2,000 at 18 percent. If you decide to only pay the (estimated) minimum, you will end up paying over $4,423 for your $2,000 balance, and over half of that will be interest.
  • If you can add an extra $50 a month, you will only end up paying about $2,485, or about $500 in interest.
  • The lesson here is that just paying the minimum on your credit cards is an awful trap, and you really need to try to add at least a little extra each month.

In any case, you are free to use this credit card payoff calculator from RemediesForTheRestofUS.com as many times as you like. The most important thing to understand is that paying minimum payments for credit card balances is an awful trap. It is not at all like paying the set payment on other types of debt like an auto or home loan.

What About Store Credit for Appliances, Electronics, Etc.?

Typically store credit, such as you might get for a washing machine or similar appliance, is a bit friendlier. Still, offers for 0% interest rates for six months to eighteen months are popular. What you need to be careful of is actually paying your balance off by the deadline. Otherwise, the creditor may add back in all the interest that they did NOT charge you before.

Planning to Pay Credit Card Minimum Balances is Not a Good Debt Remedy!

Anyway, the whole instructional lesson here is that planning to pay minimum credit card payments is usually a trap that leads to almost endless debt. You could end up paying twice as much for a purchase as you thought you would.

 

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