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Looking to pay off your credit card debt?
Use this simple credit card minimum payment calculator to see how long it will take you to pay off credit cards.
Paying off credit card debts is one of the fastest ways to boost your credit score.
Not only that, but it will also help you avoid paying extra on interest.
As a rule of thumb, it’s a good practice to always pay more than the minimum payment.
When you only pay your minimum, you end up paying far more in interest charges than if you were to pay down more. Even if the more is just $20, in the long run, it can save hundreds if not thousands.
Let’s take a look at one scenario.
Let’s say you owe $2,000 in credit card at 14% APR. If you make monthly minimum payment until you pay off, you end up paying over $1800 in interest.
Instead, if you pay down by $100 every month, without any further charges on the card, you’ll be paying $290 in interest. That’s over $1,500 in savings from just one credit card.
If you are trying to pay down your credit card debt to be debt free, make it a point to pay more than the minimum.
Credit Card Balance is your current balance on your credit card.
Credit Card Rate is the interest rate that’s applied to your credit card balance. If you enter a promotional interest rate only offered for a short time, you may take longer to pay off the balance.
Balance Payoff provides how long it’ll take to pay off the credit card should you only pay the minimum.