Stuck with credit card debt? Wondering how long it will take to pay off? This calculator will provide the answer.
Just enter into the input fields your arbitrary values and click on the calculate button.
This calculator computes the monthly payment amount needed to completely pay off a credit card debt within the number of months specified.
This takes into account monthly interest, which is cumulatively compounded onto the monthly balance, based on the specified annual interest rate and spread out over the specified number of months to pay it off.
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You can DETERMINE HOW MUCH to PAY MONTHLY to PAY OFF your CREDIT CARD and not be OVERWHELMED by MONTHLY INTEREST CHARGES!
This TUTORIAL will demonstrate the purpose of and the uses of the Credit Card Payout Goal Calculator
Today, credit cards have become a fact of life in our country, as a matter of fact it has become a fact of life all over the world. Everybody has a credit card, everybody uses credit cards and many people even have multiple credit card accounts.
While using a credit card and getting a credit card can be relatively easy, paying off a credit card can prove to be difficult or a great burden. As a matter of fact, it has been estimated that if an individual were to make the minimum monthly payment every month on the credit card without adding any additional charges, it could take in excess of 20 years to pay off that credit card balance.
So the purpose of this calculator is to help you determine how to make payments to pay off your credit card earlier and not be overwhelmed by monthly interest charges.
So for example, we are going to take an arbitrary amount, let us assume that you have a credit card and you owe $8,000 on that credit card. We are going to assume again arbitrarily that the interest is 22% which is not uncommon and we’re also going to assume that you like to pay this credit card off in 36 months. You want to be totally debt free on this credit card in 36 months.
This calculator will let you know how much the monthly payment has to be. In order to accomplish your goal, you would need to make payments of $297.52 for the next 36 months. At which point in time your credit card will completely be paid off.
You also have to bear in mind that 36 payments of $297.52 equals $10,700. So you would be paying $10,700 in order to liquidate the debt of $8,000. If you would deduct the $8000 from $10,700, you would see that you would still be paying $2,700 in total monthly interest charges.
And also bear in mind that this payment assumes that you will not be making any additional charges on this credit card. If however you continue using the credit card, this calculation is invalid. If you have multiple credit cards, you can do this separately for each credit card, determine what the balance on each card is and what the interest rate is an calculate the payment separately or you could just add your total balances together, and take an average interest rate and then you could set it to the number of months you would like, it will calculate what your total monthly payment should be for that desired number of months to pay off all your credit cards.