While surfing the net, i stumbled upon this article on credit card calculator written by Robin Williams. Happy reading!
There is this psychological benefits of knowing when to be free from any kind of debt. If you have piled up a huge amount of credit card debt and want to know how long it would take to become debt free by making a specific monthly payment, you need to use a credit card payment calculator.
Nobody wants to be in debt. Unfortunately, everyone in his or her life experiences debt at some point in time. At present, many people in America are head over heels in debt due to a number of reasons and one of the most significant reasons is irresponsible credit card usage. Credit card is the simplest form of credit available and one can buy as many things as he wants subject to the credit limit of his card. The problem arises when credit card debt piles up. Since no cash payment is necessary at the time of buying something with a plastic card, people go on spending spree before realizing that they have accumulated a huge amount of credit card debt. Subsequently, they try to look for options to pay off their credit card debts.
When you need to pay off your credit cards, you should be planned and disciplined in your approach. You can use a credit card payment calculator to work out how long it would take to pay off your credit card debt. To find out the answer to this question, you need the following inputs:
- How much you owe on your credit card (your card balance)
- The yearly interest rate on your card
- The monthly payment you want to make
When you enter these figures into a credit card payment calculator, it would give you the number of months you require to pay off your card. An example would give you a better understanding. Suppose you have run up $10,000 in credit card debt. If the interest rate is 18% and you can only manage to pay $300 each month, then how many months would it require to pay off your credit card debt in full? If you input these numbers into a credit card payment calculator, you would find out that it would require nearly 4 years or 47 months to eliminate your credit card debt.