Learn How to Use Credit Card Payment Calculator
What is a
Credit Card Payment Calculator?
A credit card payment calculator is a valuable
resource offered by financial institutions and credit card companies that
enables a borrower to effectively evaluate their monthly payments in relation
to their fulfillment of debt.
The credit card payment calculator is utilized by
individuals who have outstanding balances on their credit cards. Following the
input of a few basic variables tied into the underlying credit card and its
basic terms, the individual can view how much in regards to monthly payments is
needed to get out debt.
The credit card payment calculator is used to gauge an individual’s repayment amount, meaning the amount in monthly or total payments that is needed to clear the debts from their credit cards. As opposed to mapping out the payments by hand, the credit card payment calculator enables the individual to view the figures in an instantaneous fashion.
All an
individual needs to view the repayment schedule is the percent of interest or
APR attached to the credit card, their remaining balance, meaning the
outstanding balance of the credit card and the desired number of months which
the individual wishes to be debt free— the length of time the individual wishes
to pay off their balance.
Calculating a Repayment Amount on a Credit Card
payment Calculator
For a repayment amount, the individual using a
credit card repayment calculator will submit their credit card balance (for
this sake we will use $1,000), which represents the amount owed in the upcoming
billing cycle. Following this entry the individual will input their APR (15%
for this example) and the desired number of months until debt free (8 for this
example) into the credit card payment calculator.
When this information is
inputted into the credit card calculator the individual will see the following
results: “It will take you $132.13 every month to pay off your credit card.” In
this example, the credit card calculator takes your balance, the attached interest,
the desired number of months, and calculates the monthly payments needed to pay
off your credit card.
If an individual pays this amount every month,
their credit card balance owed will be 0 using the example above. As a result,
the credit card payment calculator factors in the annual percentage rate by
factoring in the monthly interest to the remaining balance.
The credit card payment calculator, therefore, is an effective tool because it includes the fees that so often cripple an individual with mounting debts. The resource is easy to use and if followed, will eliminate an individual’s credit card debts over a period of time.
NEXT: All You Need to Know About Credit Repair
